2. If Php 80,000 is invested at the rate of 6-% compounded annually, when will it earn interest of Php 15,000?

Q: 1. How much is the compound interest on P12,500 at 6% for 8 years? 2. How much will P15,000 amount…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: P500,000.00 was deposited 20.15 years ago at an interest rate of 7% compounded semi-annually. How…

A: Deposit amount (P) = P 500,000 Period = 20.15 Years Semi annual periods (n) = 20.15*2 = 40.30…

Q: 2. Find the amount and present value of Php 2,500 payable for 3 years if the money is worth 6%…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: 3. If money is worth 10% compounded quarterly, which of the following obligations is more valuable?…

A: To compare two options, firstly either the present value of the options is required to be calculated…

Q: What present value amounts to $15,000 if it is invested for 20 years at 6% compounded annually?…

A:

Q: If money is worth 9% compounded annually, which of the following obligations is more valuable? Use…

A: The present value is the worth of amount that has to be received/paid in the future.

Q: 3. When will Php 30,000 earn interest of Php 15,000 if it is invested at the rate of 7.5% compounded…

A: Time value of money concept says that a sum of amount invested today will have more value in future…

Q: Suppose you have Php 1000 deposited at 4.45% compounded semiannually. About long will it take your…

A: The number of period:  The number of periods is the length of time between the present and the…

Q: 1. What is the difference between the compound interests on ₱5000 for 1 year at 4% per annum…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: 4. RM27,000 was invested for 5 years. The interest rate offered was 6% compounded every 2 months for…

A: The future value of the investment will depend upon the interest rate for the period and the…

Q: What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% (b) What is…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: What is the present value of $2,000 that will be received after 4 years if the interest rate is 12%…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: What is the future value if $15,000.00 is invested for 2 years at 10% compounded every 2 months? If…

A: Cash flow related future discounted, time value of money, or TVM, helps account for the consequences…

Q: (4) Calculate the total amount of money that would be accumulated if an amount of money of GH¢ 6,000…

A: An annuity is the sum total of all the periodic payments or investments made over the period of time…

Q: Q3: An interest rate equal to 7% compounded annually: (a) If $20,000 is borrowed for 5 years what…

A: Given information: Amount borrowed : $20,000 Time : 5 years Rate of interest : 7%

Q: Fifty thousand pesos is deposited annually at an interest rate of 6% per annum compounded…

A: The number of years which will be required to accumulate the given amount is known as the duration…

Q: P50,000 was deposited on savings at a rate of 10% per annum for 3 years. What is the compound…

A: The present value that is compounding over the period of time will be turned out as future value.…

Q: A sum of Rs 390200 is to be paid back in three equal annual instalments. How much is each…

A: The installment amount can be calculated with the help of present value of annuity function.

Q: 1. What is the annual rate of interest if ₱265 is earned in four months of an investment of ₱…

A: Compound interest is the interest on a loan based on the total loan amount and the accumulated…

Q: A sum of 12,500 amounts to 15,500 in 4 years at the rate of simple interest. What is the rate of…

A: Simple interest is defined as an interest type, which is an easy method for the calculation of an…

Q: Q) $15,000 is invested in an account at time 0. At the end of 4 years, Invested into the same…

A: Future Value Future value (FV) is the value of a current asset at a future date based on an assumed…

Q: Php60000 was deposited annually at an interest of 24% compounded quarterly. About how many years…

A: Annual deposit (P) = Php 60000 Interest rate (APR) = 24% Number of compounding per year (m) = 4…

Q: b. If you borrow R13,000 at 8% compounded annually with the repayment schedule below, what is the…

A: Loan amount = R 13000 First payment of amount A occurs in year 2 and last payment is worth (A+600)…

Q: of 12% per

A: Effective Rate-: The Effective Interest Rate, is simply an effective yearly or interest rate, annual…

Q: What will be the compound interest accrued on a sum of $3500 at the rate 8% in 2 years?

A: Given: Rate of interest (r)= 8% Time period = 2 years

Q: 3.A total of Php25,000 is invested at a simple monthly interest rate of 1% for 6 months. How much…

A: Simple Interest = P x n x r where, P= Principal n= number of months r= monthly rate of interest

Q: A principal of ₱86,000 will amount to how much when invested 2 years and 6 months at 11.25%…

A: To calculate the future value of principal we will use the below formula   Future value = P*(1+r)t…

Q: If Php 5,000 becomes Php 9,734 after 12 years, when invested at an unknown rate of interest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: 4. At what simple interest rate will Php620,000 increase to Php 700,000 in 8 years?

A: HERE, PRINCIPAL = PHP 620,000 INTEREST RATE = ? TIME = 8 YEARS AMOUNT AFTER 8 YEARS = PHP700,000 IT…

Q: What amount should you invest today if you wish to receive Php 1647750, 24 years from now if your…

A: Interest on interest, or compound interest, is the adding of interest to the principal sum of a loan…

Q: Determine the total amount if P11, 500,000 is invested in 2 years, 5 months with interest rate of 13…

A: Time has been precious in all perspectives, however in terms of finance, the time has a monetary…

Q: RM600 is invested for 4 years 10 months. This investment is offered an interest rate of 9%…

A: Using excel FV function

Q: th 1. What single payment on the 6 year will settle debts of Php th 10,000due in 4 years, and Php…

A: Amount due in 4 years (P4) = Php10,000 Amount due in 8 years (P4) = Php15,000 Quarterly interest…

Q: Find the future value and the interest earned if RM2,000 is invested for 3 years at 6% compounded…

A: In this question we need to compute the future value and the interest earned on investment.

Q: In how many years is required for Php2000 to increase by Php3000 if the interest is at 12%…

A: Time value of money is a financial concept that is used for estimating or determining the value of…

Q: 1. RM600 is invested for 4 years 10 months. This investment is offered an interest rate of 9%…

A: Future value = present value *(1+r)^n

Q: 4. RM27,000 was invested for 5 years. The interest rate offered was 6% compounded every 2 months for…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: How long does it take Php100,000 to earn Php5,035 interest if money is worth 8% compounded…

A: Principle amount(PV) is Php100,000 Interest earned(I) is Php5,035 Interest rate(r) is 8% Compounded…

Q: What present value P amounts to $290,000 if it is invested at 6%, compounded semiannually, for 17…

A: In the given question the maturity value of investment (i.e., Future Value) is $ 290,000. This is…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.