OWn iaing Two proposals being onsidered are: The construction of the building now to cost P4 000 000 The construction of a smaller building now to cost P3 00, 000 and at ihe end of 6 years an extensIon to be ded to cost P2 000 000 03 12. By how much is proposal B more economical than proposal A if interest.rate is 20% and depreciation to be neglected?. a P150,000 b P 169 000 c.P130,000 d. none of the above 03 13. What is the effective rate of 12% compOunded monthly?2 b. 10 45% 01114. What is the offective rate of 12.5% compounded annually? b. 11.45% a 11.68% C 21% d none of the above a. 12.68% C 31% d none of the above 03 16. 1f you are investing your money which is better for the two conditions stated above? 12.5% compoLnded c 73% 12% monthly compounded b. compounded d none of the above annually annually

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
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F. The College of Engineering is planning to put up its own laboratory building Two proposals being
considered are:
AThe construction of the building now to cost P4 000 000
B The construction of a smaller building now to cost P3 000 000 and atthe end of d years, an extension to be
added to cost P2 000, 000
CO3
12. By how much is proposalB more economical than proposal A if interest rate is 20% and depreciation
to be neglected2
a. P 150,000
b P 169 000
c.P 130,000
d. none of the above
CO3 13. What is the effective rate of 12% compounded monthly2
b. 10 45%
| CO1 14. What is the effective rate of 12.5% compounded annually?
b. 11.45%
a 11.68%
C 21%
d. none of the above
a. 12.68%
15.If you are investing your money which is better for the two conditions stated above?
a 12% compounded
monthly
C 31%
d none of the above
CO3
73%
annually
b.
12.5% compounded
C.
Compounded d none of the above
annually
Transcribed Image Text:F. The College of Engineering is planning to put up its own laboratory building Two proposals being considered are: AThe construction of the building now to cost P4 000 000 B The construction of a smaller building now to cost P3 000 000 and atthe end of d years, an extension to be added to cost P2 000, 000 CO3 12. By how much is proposalB more economical than proposal A if interest rate is 20% and depreciation to be neglected2 a. P 150,000 b P 169 000 c.P 130,000 d. none of the above CO3 13. What is the effective rate of 12% compounded monthly2 b. 10 45% | CO1 14. What is the effective rate of 12.5% compounded annually? b. 11.45% a 11.68% C 21% d. none of the above a. 12.68% 15.If you are investing your money which is better for the two conditions stated above? a 12% compounded monthly C 31% d none of the above CO3 73% annually b. 12.5% compounded C. Compounded d none of the above annually
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