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8. A father plans to give a cash gift for his son amounting to P 500,000 ten years from now for his debut. What amount should be invested if it will earn interest of 3% compounded annually during the first 4 years and 5% compounded quarterly during the remaining years? (10 pts)

8. A father plans to give a cash gift for his son amounting to P 500,000 ten years from now for his debut. What amount should be invested if it will earn interest of 3% compounded annually during the first 4 years and 5% compounded quarterly during the remaining years? (10 pts)

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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8. A father plans to give a cash gift for his son amounting to P 500,000 ten years from now for his debut. What amount should be invested if it will earn interest of 3% compounded annually during the first 4 years and 5% compounded quarterly during the remaining years? (10 pts) 9. Aguilar Industries borrowed P 100,000 from Buban Corporation on Feb 14, 1996 and P50,000 on Feb 14, 2000. Al made a partial payment of P 30,000 on Feb 14, 2002. It was agreed on the contract that the balance will be paid separately on Feb 14, 2005 and Feb 14, 2008. The second amount would be 25% larger than the first with applied interest of 5%. What is the amount of each payment? (10 pts) 10. A man deposits P 25,000 in a bank account at 5% compounded monthly for 3 years. If the inflation rate after 1 year starts at 4.5% and increases by 0.5% per year, will this effectively protect the buying po of the original principal if he intends to withdraw the amount after 3 years? How about after 5 years? (15 pts)
Transcribed Image Text:8. A father plans to give a cash gift for his son amounting to P 500,000 ten years from now for his debut. What amount should be invested if it will earn interest of 3% compounded annually during the first 4 years and 5% compounded quarterly during the remaining years? (10 pts) 9. Aguilar Industries borrowed P 100,000 from Buban Corporation on Feb 14, 1996 and P50,000 on Feb 14, 2000. Al made a partial payment of P 30,000 on Feb 14, 2002. It was agreed on the contract that the balance will be paid separately on Feb 14, 2005 and Feb 14, 2008. The second amount would be 25% larger than the first with applied interest of 5%. What is the amount of each payment? (10 pts) 10. A man deposits P 25,000 in a bank account at 5% compounded monthly for 3 years. If the inflation rate after 1 year starts at 4.5% and increases by 0.5% per year, will this effectively protect the buying po of the original principal if he intends to withdraw the amount after 3 years? How about after 5 years? (15 pts)
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