A young engineer wants to surprise her husband with a European vacation for their tenth anniversary, which is five years from now. She determine that the trip will cost $7,000. Assuming an interest rate of 5.5% compounded daily, approximately how much money does she need to deposit today for the trip?
Solve for each problems. Show your solution legible and neatly. Write the question, the given(also what is the given?), what to find and a cash flow diagram. Answers should be in 2 decimal places, unless stated otherwise. Solution should be hand-written. Question can be hand-written or type-written. Answer should be in 2 decimal places.
21. If the nominal interest rate is 3% of P5,000, how much worth in 15 years continuously compounded account?
22. You deposited $15,000 in a savings account five years ago. The account has earned 5.25% interest compounded continuously since then. How much money is in the account today?
23. A young engineer wants to surprise her husband with a European vacation for their tenth anniversary, which is five years from now. She determine that the trip will cost $7,000. Assuming an interest rate of 5.5% compounded daily, approximately how much money does she need to deposit today for the trip?
24. Mr. Ayala borrows P1,000. In 4 years, the money become P2,500 compounded bimonthly. Find the nominal interest rate.
25. Find the effective interest rate of 11% quarterly.
26. P3,500 was deposited in a bank account 15 years ago. Today it is worth P10,000. Interest is paid weekly. Determine the interest rate paid on this account?
27. You are given the option to borrow P5,000 you need for one year. Which of this will you pay lesser interest. To borrow from a friend at an interest rate of 1.5% month or a loan from a bank at a rate 18% per year?
28. A sum of P5,000 was invested now and left for 6 years, at which this time the principal is withdrawn. The interest that has accrued is left for another 6 years. If the effective annual interest rate is 8%, what will be the withdrawal amount at the end of the 12th year?
29. If P8,000 shall accumulate for 10 years at 12% compounded quarterly. Find the compound interest at the end of 10 years.
30. A man borrowed P300,000 from a bank and agreed to pay the loan at the end of a month. The bank discount the loan and give him P250,000. What is the rate of discount?
31. A man borrowed P30,000 from Jan 18, 2004 to November 3, 2008 with 12% simple interest. Find the exact interest.
32. A machine has a selling price of P400,000 after given 15% discount. Find the original amount.
33. The company wanted to receive P500,000 6 years from now. Considering an interest of 14% compounded semi-annually, find the amount must be deposited in the bank to receive the amount after 6 years?
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