22. Find the amount and present value of P15,000 payable every three months for 10 years, if money is worth 5% compounded quarterly. Find the amount and present value of P40,000 payable every end of the month at 9% compounded monthly for 5 years and 4 months. 23. A sala set is offered for sale for P50,000 down payment and P1,500 every 3 months for the balance for 24 months. If interest is to be computed at 4% compounded quarterly, what is the cash price equivalent of the sala set? 24. A fund is to be created by investing P10,000 at the end of every month for 10 years. If money is worth 8% compounded monthly, how much is in the fund at the end of 10 years? SHow much monthly deposit must be made for 8 years and 6 months in order to accumulate P125,000 at 7% compounded monthly?
22. Find the amount and present value of P15,000 payable every three months for 10 years, if money is worth 5% compounded quarterly. Find the amount and present value of P40,000 payable every end of the month at 9% compounded monthly for 5 years and 4 months. 23. A sala set is offered for sale for P50,000 down payment and P1,500 every 3 months for the balance for 24 months. If interest is to be computed at 4% compounded quarterly, what is the cash price equivalent of the sala set? 24. A fund is to be created by investing P10,000 at the end of every month for 10 years. If money is worth 8% compounded monthly, how much is in the fund at the end of 10 years? SHow much monthly deposit must be made for 8 years and 6 months in order to accumulate P125,000 at 7% compounded monthly?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
no. 21, 23, 25, 27, 29, 31
Transcribed Image Text:21 Find the amount and present value of P15,000 payable every three months for 10 years,
if money is worth 5% compounded quarterly.
22. Find the amount and present value of P40,000 payable every end of the month at 9%
compounded monthly for 5 years and 4 months.
01
23. A sala set is offered for sale for P50,000 down payment and P1,500 every 3 months for the
balance for 24 months. If interest is to be computed at 4% compounded quarterly, what is the
cash price equivalent of the sala set?
24. A fund is to be created by investing P10,000 at the end of every month for 10 years. If money is
worth 8% compounded monthly, how much is in the fund at the end of 10 years?
25 How much monthly deposit must be made for 8 years and 6 months in order to accumulate
P125,000 at 7% compounded monthly?
26. Nick wants to buy a second-hand tricycle worth P40,000. He pays a down payment of P5,000
and the balance payable at end of every month for 2 years. What is Nick's monthly payment if
interest is compounded monthly at 3-%?
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27. Jessa Mae wants to have P50,000 at the end of 4 years for her graduation expenses and blow-
out party. She plans to deposit a certain amount, at the end of each month to achieve this goal.
If her deposit pays 8% compounded monthly, what should be her monthly deposit? mas
28. If you can save 875 at the end of each month, how long will it take you to accumulate
#100,000, if a you get a 6% compounded monthly on your savings?
29. The present value of an annuity is 75,000. Quarterly payments of $5,000 are invested at 4%
compounded quarterly. How many regular payments will be made?
30. Russel purchased a brand new car. He paid P250,000 down payment, and 16,500 payable
every 17th day of each month for 5 years. If money is worth 8% compounded monthly, what is
the equivalent cash price of the car?
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31. What amount must be set aside on Harvey's 7th birthday which will provide 24 quarterly
payments of 5,000 for school expenses, if the first payment is to be made on his 18th birthday,
being a freshman in college? Assume that money is worth 6% compounded quarterly?
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32. Find the value on May 30, 2019 of a sequence of 15,000 monthly payments, the first payment
to be made 5 years after, and the last payment on December 30, 2029, if money is worth 5-%
23
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compounded monthly.
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