Р900K P180к P170 РЗОК АA A F (Fig. 1) 0 1 5 7 (Fig. 2) 8 9 10 17 a. Fig. 1 shows Barboncito's periodic deposits and withdrawal up to the 7th month. If the rate of interest is 12% compounded yearly, what will be the Present Worth of his Account Outstanding Balance? b. For Fig. 2, what will the value of A that Baboncito could give, starting the 8th month, to each of the 3 Unvaccinated and Typhoon -hit Areas in Visayas and Mindanao such that his Account Outstanding Balance on the 17th Month would be equal to P150,000.00?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

The interest rate given  is 12%  compounded per year, first convert it to interest compounded monthly

P900K P180K
P170
РЗОК
АA A F
(Fig. 1)
0 1
2
5
7
(Fig. 2)
8 9 10
17
a. Fig. 1 shows Barboncito's periodic deposits and withdrawal up to the 7th month.
If the rate of interest is 12% compounded yearly, what will be the Present Worth
of his Account Outstanding Balance?
b. For Fig. 2, what will the value of A that Baboncito could give, starting the 8th
month, to each of the 3 Unvaccinated and Typhoon -hit Areas in Visayas and
Mindanao such that his Account Outstanding Balance on the 17th Month would be
equal to P150,000.00?
Transcribed Image Text:P900K P180K P170 РЗОК АA A F (Fig. 1) 0 1 2 5 7 (Fig. 2) 8 9 10 17 a. Fig. 1 shows Barboncito's periodic deposits and withdrawal up to the 7th month. If the rate of interest is 12% compounded yearly, what will be the Present Worth of his Account Outstanding Balance? b. For Fig. 2, what will the value of A that Baboncito could give, starting the 8th month, to each of the 3 Unvaccinated and Typhoon -hit Areas in Visayas and Mindanao such that his Account Outstanding Balance on the 17th Month would be equal to P150,000.00?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Interest Rate
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education