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Part 1   You have P10,000 to invest.  You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one  will produce the largest sum at the end of 22 years? An account that compounds interest.​ please explain 1.1 Annually​ 1.2 Daily​ 1.3 Quarterly​ 1.4 Monthly​ ​

Part 1   You have P10,000 to invest.  You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one  will produce the largest sum at the end of 22 years? An account that compounds interest.​ please explain 1.1 Annually​ 1.2 Daily​ 1.3 Quarterly​ 1.4 Monthly​ ​

Essentials Of Investments
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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Part 1

 

You have P10,000 to invest.  You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one  will produce the largest sum at the end of 22 years? An account that compounds interest.​ please explain

1.1 Annually​

1.2 Daily​

1.3 Quarterly​

1.4 Monthly​

​

2. The company is setting aside funds to acquire a property for its new warehouse. The company needs P74,735 to make the down payment. The company deposits P5,000/month in the fund account which pays 1% per month. As the financial manager you have been tasked to determine how long it will take to accumulate enough funds to acquire the property?​

​

3. Suppose you are 40 years old and plans to retire in exactly 20 years.  Twenty one years from now you will need to withdraw P50,000 per year from your retirement fund to add to your SSS pension. Assume you are to live for 85 years, how much  money should you place in the retirement fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year form the fund?​

 

 

Part 2

 

4.1 Compute the ratios that measure, liquidity, asset utilization, debt utilization and profitability.​

​

4.2 Analyze, interpret, and draw conclusion based on the results of your computations.​

 

Inventory Assets Current Assets Cash & Cash Equivalent Held for Trading Trade and Other Receivables Total Current Assets TOTAL ASSETS Non Current Assets Property, Plan & Equipment Investment in Equity Securities Total Non-current Assets Liabilities and Shareholders Equity Current liabilities Trade & Other Payables Unearned Revenues Notes Payable-current Total current liabilities TREN Corporation Comparative Statements of Financial Position December 31, 2015 (in Thousand pesos Non-Current Liabilities Notes Payable- non-current Total Liabilities Shareholders' Equity Ordinary Shares, P100 par Premium on Ordinary Shares Total paid-in-capital Retained Earnings Total Shareholders' Equity TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2015 2014 24,890 2,120 10,000 16,000 6,000 8,960 10,600 59,850 18,720 150,000 161,280 16,000 20,000 166,000 181,280 225,850 200,000 2015 2014 8,400 3,350 10,600 11,650 900 600 19,900 15,600 73,550 100,000 93,450 115,600 80,000 60,000 16,000 10,000 96,000 70,000 36,400 14,400 132,400 84.400 225,850 200,000
Transcribed Image Text:Inventory Assets Current Assets Cash & Cash Equivalent Held for Trading Trade and Other Receivables Total Current Assets TOTAL ASSETS Non Current Assets Property, Plan & Equipment Investment in Equity Securities Total Non-current Assets Liabilities and Shareholders Equity Current liabilities Trade & Other Payables Unearned Revenues Notes Payable-current Total current liabilities TREN Corporation Comparative Statements of Financial Position December 31, 2015 (in Thousand pesos Non-Current Liabilities Notes Payable- non-current Total Liabilities Shareholders' Equity Ordinary Shares, P100 par Premium on Ordinary Shares Total paid-in-capital Retained Earnings Total Shareholders' Equity TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2015 2014 24,890 2,120 10,000 16,000 6,000 8,960 10,600 59,850 18,720 150,000 161,280 16,000 20,000 166,000 181,280 225,850 200,000 2015 2014 8,400 3,350 10,600 11,650 900 600 19,900 15,600 73,550 100,000 93,450 115,600 80,000 60,000 16,000 10,000 96,000 70,000 36,400 14,400 132,400 84.400 225,850 200,000
Sales Less: Cost of good sold Gross Income Add: Other Income Total Income Less: Other Expenses Finance Costs (Interest) Total Expenses Net Income before taxes Less: Income Tax Net Income after Taxes 2015 2014 480,000 400,000 364,000 280,000 116,000 120,000 15,000 9,600 131,000 129,600 12,400 14,400 19,000 26,800 19,000 104,200 110,600 32,334 35,392 71,866 75,208 4.1 Compute the ratios that measure, liquidity, asset utilization, debt utilization and profitability. 4.2 Analyze, interpret, and draw conclusion based on the results of your computations.
Transcribed Image Text:Sales Less: Cost of good sold Gross Income Add: Other Income Total Income Less: Other Expenses Finance Costs (Interest) Total Expenses Net Income before taxes Less: Income Tax Net Income after Taxes 2015 2014 480,000 400,000 364,000 280,000 116,000 120,000 15,000 9,600 131,000 129,600 12,400 14,400 19,000 26,800 19,000 104,200 110,600 32,334 35,392 71,866 75,208 4.1 Compute the ratios that measure, liquidity, asset utilization, debt utilization and profitability. 4.2 Analyze, interpret, and draw conclusion based on the results of your computations.
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