STRICTLY USE THE GIVEN FORMULA IN THE PHOTO ATTACHED 1. How much must a man deposit in a bank that pays 7% compounded annually so that after 10 years he will have P3,000,000 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. 7. Four friends deposited P15,000 each in a trust fund that gives 16% interest qu
STRICTLY USE THE GIVEN FORMULA IN THE PHOTO ATTACHED 1. How much must a man deposit in a bank that pays 7% compounded annually so that after 10 years he will have P3,000,000 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. 7. Four friends deposited P15,000 each in a trust fund that gives 16% interest qu
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
1. How much must a man deposit in a bank that pays 7% compounded annually so that after 10 years he will have P3,000,000
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.
7. Four friends deposited P15,000 each in a trust fund that gives 16% interest quarterly. Find the total money in 8 years.
8. Mrs. Dimayuga deposits P12,000 in a savings account on March 30, 2006. Six months later, she deposited P6,000. If the bank credits at 12% compounded quarterly and no withdrawal has been made, how much is her money on December 30, 2012?
9. Mrs. Delos santos has P75,000. 1/3 of it was invested at 18% compounded semi-annually. 1/4 of the remaining amount was invested at 12% compounded quarterly, and the remaining amount was invested at 12% compounded monthly. Find her total investment in 6 years.
10. Find the compound amount and interest of P29,700 invested for 6 years and 9 months at 18% compounded monthly.
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
Transcribed Image Text:as a percentage "per month."
Stated Rate
12% p.a. compounded annually
12% p.a. compounded semiannually
12% p.a. compounded quarterly
12% p.a. compounded monthly
Formula for:
Example
Kategy 15/19
n
12
6
4
-
=
=
=
to be used to calculate interest must be stated
Adjusted Interest Rate (i)
12% per annum
6% per 6-month period (12% / 2)
3% per quarter (12%/4)
1% per month (12% / 12)
Time / compounded period
1 year (12 mos) / monthly (1 mo)
1 ½ year (18 mos) / quarterly (3 mos)
2 years (24 mos) / semiannually (6 mos)
143
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