1. Mr. Lee decided to sell their farm and to deposit the fund in a bank. After computing the interest, they learned that they may withdraw Php 500,000.00 yearly for 8 years starting at the end of 6 years when it is time for him to retire. How much is the fund deposited if the interest rate is 4.5% converted annually? 2. A group of medical students decided to invest the money they eamed from the fund-raising project. After 6 months from today, they want to withdraw from this fund Php 10,000.00 quarterly for 1 year to fund their medical mission. How much is the total deposit now if the interest rate is 3% converted quarterly? 3. Bella converted her loan to light payments which gives her an option to pay Php 13,000.00 every 2 years for 8 years. The first payment is due 4 years from now. How much is the amount of the loan if the interest rate is 9% converted every 2 years?

1. Mr. Lee decided to sell their farm and to deposit the fund in a bank. After computing the interest, they learned that they may withdraw Php 500,000.00 yearly for 8 years starting at the end of 6 years when it is time for him to retire. How much is the fund deposited if the interest rate is 4.5% converted annually? 2. A group of medical students decided to invest the money they eamed from the fund-raising project. After 6 months from today, they want to withdraw from this fund Php 10,000.00 quarterly for 1 year to fund their medical mission. How much is the total deposit now if the interest rate is 3% converted quarterly? 3. Bella converted her loan to light payments which gives her an option to pay Php 13,000.00 every 2 years for 8 years. The first payment is due 4 years from now. How much is the amount of the loan if the interest rate is 9% converted every 2 years?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 8E

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Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

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1. Mr. Lee decided to sell their farm and to deposit the fund in a bank. After
computing the interest, they learned that they may withdraw
Php 500,000.00 yearly for 8 years starting at the end of 6 years when it is
time for him to retire. How much is the fund deposited if the interest rate is
4.5% converted annually?
2. A group of medical students decided to invest the money they eamed from
the fund-raising project. After 6 months from today, they want to withdraw
from this fund Php 10,000.00 quarterly for 1 year to fund their medical
mission. How much is the total deposit now if the interest rate is
3% converted quarterly?
3. Bella converted her loan to light payments which gives her an option to pay
Php 13,000.00 every 2 years for 8 years. The first payment is due 4 years
from now. How much is the amount of the loan if the interest rate is 9%
converted every 2 years?

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