1. Josiah, a fisherman, won a local lottery game. After reserving a portion of his winning for his family's immediate expenses, he is left with P 150,000.00. He decided to put this in an account providing 3% interest compounded monthly. He also plans to let the money grow for 5 and then make equal monthly withdrawals for another 5 years until the years, money is the account is deleted. How much should be his monthly withdrawals?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Solve the following.

Solve the following:
1. Josiah, a fisherman, won a local lottery game. After reserving a portion
of his winning for his family's immediate expenses, he is left with P
150,000.00. He decided to put this in an account providing 3% interest
compounded monthly. He also plans to let the money grow for 5 years,
and then make equal monthly withdrawals for another 5 years until the
money is the account is deleted. How much should be his monthly
withdrawals?
2. A house and lot are to be purchased by paying P 15,500.00 monthly
payable in 25 years. The first payment is due in 1 year. How much is
the cash price of the house and lot if the interest rate is 12% converted
monthly?
3. Kim's savings may allow her to withdraw P 50,000.00 semi-annually for
5 years starting at the end of 5 years. How much her savings, if the
interest rate is 8%, converted semi-annually?
Transcribed Image Text:Solve the following: 1. Josiah, a fisherman, won a local lottery game. After reserving a portion of his winning for his family's immediate expenses, he is left with P 150,000.00. He decided to put this in an account providing 3% interest compounded monthly. He also plans to let the money grow for 5 years, and then make equal monthly withdrawals for another 5 years until the money is the account is deleted. How much should be his monthly withdrawals? 2. A house and lot are to be purchased by paying P 15,500.00 monthly payable in 25 years. The first payment is due in 1 year. How much is the cash price of the house and lot if the interest rate is 12% converted monthly? 3. Kim's savings may allow her to withdraw P 50,000.00 semi-annually for 5 years starting at the end of 5 years. How much her savings, if the interest rate is 8%, converted semi-annually?
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