SIMPLE INTEREST 8. How much should Mrs. Dolores invest today in a time deposit with 5.5% interest if she expects to have P175, 000 for his son's education at the end of 5 years? 9. Mr. Pascual, an airline owner, decided to invest P2.5 million to fund his department handling spare parts replacement. How long will it take his investment to accumulate to P3.325 million if the bank's interest rate is 5.5%? COMPOUND INTEREST 5. Jamie wants to have P45,000 in 2 years to buy a new computer. How much money should he invest today in a fund that earns 5% compounded quarterly to get this amount after 2 years? 7. At what rate compounded monthly should P25,000 be deposited in a bank to gain an interest of P4,500 in 3 years? ANNUITIES 4. A student ivests Php 500 every 6 months at 4% compounded semi-annually. Find his savings in 12 years. 5. Anika purchased a property and pays Php 250,000 cash and the balance is to be repaid in 20 annual payments of Php 10,000 each. If money is worth 4.5%, what is the cash value of the property?

SIMPLE INTEREST 8. How much should Mrs. Dolores invest today in a time deposit with 5.5% interest if she expects to have P175, 000 for his son's education at the end of 5 years? 9. Mr. Pascual, an airline owner, decided to invest P2.5 million to fund his department handling spare parts replacement. How long will it take his investment to accumulate to P3.325 million if the bank's interest rate is 5.5%? COMPOUND INTEREST 5. Jamie wants to have P45,000 in 2 years to buy a new computer. How much money should he invest today in a fund that earns 5% compounded quarterly to get this amount after 2 years? 7. At what rate compounded monthly should P25,000 be deposited in a bank to gain an interest of P4,500 in 3 years? ANNUITIES 4. A student ivests Php 500 every 6 months at 4% compounded semi-annually. Find his savings in 12 years. 5. Anika purchased a property and pays Php 250,000 cash and the balance is to be repaid in 20 annual payments of Php 10,000 each. If money is worth 4.5%, what is the cash value of the property?

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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