1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is the future value of thisinvestment?2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is theamount in the account after 1 year if the account is:a. compounded annuallyb. compounded semi-annuallyc. compounded quarterlyd. compounded monthlye. Which is advantageous to the investor?3. A four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how much is theamount of the annuity payment?4. Find the present value of a deferred annuity of P4,800 every six months for 7 years, if the first payment is made in 4years, and the money is worth 5.5% compounded semi-annually.5. A loan is 6 Semi-annual payments of P4,500 are to be made to pay for a loan at 5.5% compounded semi-annualy.Find the value of the loan.

“Hey, since there are multiple questions posted, we will answer first question. If you want any…

Answered: 1. Suppose Glenn invested P10,000 for 5…

1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is the future value of thi investment?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Question

1. Suppose Glenn invested P10,000 for 5 years with simple annual interest of 10%. What is the future value of this
investment?
2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the
amount in the account after 1 year if the account is:
a. compounded annually
b. compounded semi-annually
c. compounded quarterly
d. compounded monthly
e. Which is advantageous to the investor?
3. A four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how much is the
amount of the annuity payment?
4. Find the present value of a deferred annuity of P4,800 every six months for 7 years, if the first payment is made in 4
years, and the money is worth 5.5% compounded semi-annually.
5. A loan is 6 Semi-annual payments of P4,500 are to be made to pay for a loan at 5.5% compounded semi-annualy.
Find the value of the loan.

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