2. If P500.00 is deposited in an account at the beginning of each year for 6 years at an annual interest rate of 7%, how much can be withdrawn after 6 years? 3. A fund is to provide an annual scholarship at P4,000.00 for the first 5 years; P6,000.00 for the next 5 years and P9,000.00 thereafter. The fund will be established 1 year before the first scholarship is awarded. If the fund earns 12% interest, what sum must be deposited? 4. A man paid 10% as down payment of P200,000.00 for a house and lot and agreed to pay the balance on monthly instalments for 5 years at an interest rate of 15% compounded monthly. What was the monthly instalment in pesos? 5. An investor deposits P10,000.00 at the end of each year in an account which gives a nominal annual interest of 5% compounded continuously. How much sum will he accumulate in 10 years?

2. If P500.00 is deposited in an account at the beginning of each year for 6 years at an annual interest rate of 7%, how much can be withdrawn after 6 years? 3. A fund is to provide an annual scholarship at P4,000.00 for the first 5 years; P6,000.00 for the next 5 years and P9,000.00 thereafter. The fund will be established 1 year before the first scholarship is awarded. If the fund earns 12% interest, what sum must be deposited? 4. A man paid 10% as down payment of P200,000.00 for a house and lot and agreed to pay the balance on monthly instalments for 5 years at an interest rate of 15% compounded monthly. What was the monthly instalment in pesos? 5. An investor deposits P10,000.00 at the end of each year in an account which gives a nominal annual interest of 5% compounded continuously. How much sum will he accumulate in 10 years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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