4. A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually. B: P 3 000 deposited at the beginning of each quarter for 3 years at 12% compounded quarterly.
4. A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually. B: P 3 000 deposited at the beginning of each quarter for 3 years at 12% compounded quarterly.
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
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Transcribed Image Text:3. Find the amount of PS000 ordinary annuty payable quarIony for s years. Money is worst
4. Consider the given annulties:
A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually.
B: P 3 000 deposíted at the beginning of each querter for 3 years at 12% compounded quarterly.
Calculate the amount of each annulty. Compare the two annuities.
5. A mortgage of P 80 000 is to be paid by annual payment over a period of 10 years. If the interest rate is 15.8%
effective.
a) Calculate the annual payment;
b) Construct an amortization achedule;
c) Find the total payment made;
d) Find the total interest paid
6. A project requires an initial outlay of P 100 000. The relevant inflows associated with the project are P 60 000 in
year one andP 50 000 in years two and three. The appropriate discount rate for this project is 11%. Compute the
net present vafue. Should the company accept the project?
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