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    ACTIVITY1

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    Emman Nonato
    This document contains 12 word problems related to interest rates, compound interest, annuities, loans, and other financial calculations. The problems involve calculating amounts over time given initial investments, interest rates, payment amounts and time periods. They require using formulas for interest, present and future value, annuities and other time value of money calculations.

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    © All Rights Reserved
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    ACTIVITY1

    Uploaded by

    Emman Nonato
    192 views1 page
    This document contains 12 word problems related to interest rates, compound interest, annuities, loans, and other financial calculations. The problems involve calculating amounts over time given initial investments, interest rates, payment amounts and time periods. They require using formulas for interest, present and future value, annuities and other time value of money calculations.

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    ACTIVITY1.docx

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    This document contains 12 word problems related to interest rates, compound interest, annuities, loans, and other financial calculations. The problems involve calculating amounts over time given initial investments, interest rates, payment amounts and time periods. They require using formulas for interest, present and future value, annuities and other time value of money calculations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    192 views1 page

    ACTIVITY1

    Uploaded by

    Emman Nonato
    This document contains 12 word problems related to interest rates, compound interest, annuities, loans, and other financial calculations. The problems involve calculating amounts over time given initial investments, interest rates, payment amounts and time periods. They require using formulas for interest, present and future value, annuities and other time value of money calculations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    1.

    What uniform annual amount should be deposited each year in order to accumulate
    P100,000 at the end of the 5th annual deposit if money earns 10% interest?
    2. If P500 is invested at the end of each year for 6 yeARS, at an annual interest rate of 7%,
    what is the total peso amount available upon the deposit of the 6th payment?
    3. A man wishes to prepare the future of his 10 year old son. Determine the monthly
    savings that the man should make with interest of 5.41% per annum to amount of
    P120,000 at the time his son will be 18.
    4. You want to save for your 10-year old son's college education. If you were guaranteed
    6% interest compounded quarterly, how much would you have to save per month to
    amount P12,000 by the time he is 18?
    5. The MSC construction company agreed to pay P100,000 for anew bulldozer with an
    expected life of 20yrs. after delivery, it was found that the dozer had only 85% of the
    guaranteed horsepower. If a more efficient machine would increase the earnings of the
    company by an estimated P12,000 annually, what would the company be willing to pay
    for the more efficient machine? Interest is 12% compounded annually.
    6. A man bought Ford Fairlane Model 1965, for P21,000 on installment basis at the rate of

    m
    12% per annum on the unpaid balance. If he paid a downpayment of P6,000 in cash and

    er as
    proposes to pay the balance in 20 monthly payments, what should this monthly payment

    co
    be?

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    7. A backpay certificate is offered for sale on which the yearly payments are P996, partly

    o.
    principal and partly interest. There are 8 annual payments still due, the first of these due
    rs e
    one year from now. How much should one pay for this note in order to get 5% interest,
    ou urc
    compounded annually on the investment?
    8. Compute the number of years in order that the capital recovery factor for a uniform
    payment series be equal to 0.1424564 if money is worth 6% compounded semiannually?
    o

    9. A man bought a refrigerator for P500 down payment and P300 per month for 24 months.
    aC s

    The same brand could have been purchased for P6750 cash. What nominal annual
    vi y re

    interest rate is the man paying


    10. A parent on the day the child is born wishes to determine what lump sum would have to
    be paid into an account annually in order to withdraw P20,000 each on the child's 18th,
    19th, 20th and 21st birthdays.
    ed d

    11. A man borrowed P300,000 from a lending institution which will be paid after 10 years at
    ar stu

    an interest rate of 125 compounded annually. If money is worth 8% per annum how
    much should he deposit to a bank monthly in order to discharge his debt 10 years
    hence?
    12. Annual maintenance costs for a rotary kiln is P2000. the placement of a new refractory
    is

    would reduce the annual maintenance cost to P500 a year for the first five years and to
    Th

    P1000 a year for the next 5 years. the annual maintenance cost after 10 years would
    again be P2000. if maintenance costs are the only savings, what maximum investment
    can be justified for the new refractory? assume interest at 4%.
    sh

    This study source was downloaded by 100000769310303 from CourseHero.com on 08-04-2021 04:36:14 GMT -05:00

    https://www.coursehero.com/file/62348715/ACTIVITY1docx/
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