How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to come up in 8 years with P2,500,000 needed for its expansion program?
How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to come up in 8 years with P2,500,000 needed for its expansion program?
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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NOTE: STRICTLY USE THE GIVEN FORMULA IN THE PHOTO ATTACHED. DONT USE EXCEL
2. How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to come up in 8 years with P2,500,000 needed for its expansion program?
3. In purchasing of house, a man makes P720,000 down payment and agrees to pay P1,200,000 5 years later. Find the cash value of the house if money is worth 14% compounded semi-annually.
4. On the birth of a child, a father wished to invest in a trust fund which gives 12% compounded quarterly. How much must he invest if he wants to accumulate P650,000 by the time the child reaches his 21st birthday?
5. To provide for a purchase of a car worth P950,000 as a gift to his mother 5 years from now. How much should Benjamin invest today at 18% compounded quarterly?
6. Mrs. Dela Cruz invested P70,000 at 12% compounded quarterly for 5 years and another P70,000 at 18% compounded semi-annually for the same length of time. Find the total amount of the two investments.
Transcribed Image Text:Please use this following Formula b
FV = PV XTI
FV = pv (1+i)"
PV = FV
(1+1)"
n
PV = FVXT₂
No.
DATE
Transcribed Image Text:Note: 1. For the Computation of Praesent Value
Using the Formula:
a. P = F
(₁+i)n)
* Use the Finiture Value
Table, then divide
by the amound (F)
n
b. P=F((1+i) - Y
to Use the Present
Value Table, then
multiply by (F)
симания
2. For Future Value
n
F = P(₁+i)"
Ok
Yong
Table sa
Book
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