155 views

Uploaded by dave

asdaxascaxasdqsdxaxxaqd

save

You are on page 1of 3

These are:

a. P10.000 at 5% simple interest to be paid at the end of 5 years

b. P25,000 discounted by 8% to be paid at the end of 3 years.

c. P15,000 at 6% per year compounded annually to be paid by

two equal amounts; one at the end of the 4th year and the

other at the end of the 8th year.

On the third year, unable to finance the repayment, he asked the

manager into letting him pay all his loans by uniform installments

every three months, starting at the end of the first three months, for 5

years. The manager agreed but at 10 compounded monthly. What was

the amount of his uniform repayments.

2. On the day his grandson was born, a man deposited to a trust

company a sufficient amount of money so that the boy could receive

ten semiannual payments of P20,000 each for his college tuition fees,

starting with his 17th birthday.

Interest at the rate of 12%

compounded semiannually was to be paid on all amounts on deposit.

There was also a provision that the grand son could elect to withdraw

no semiannual payments and receive a single lump sum amount on his

25th birthday. The grandson chose this option.

a. How much did the boy receive as the single payment?

b. How much did the grandfather deposit?

3. A woman arranges to repay a P100,000 bank loan into 10 equal

annual payments at a 16% effective annual interest rate. Due to

financial problems, she was able to make three payments only. At

end of the 5th year, the bank restructure her loan and she agreed to

pay the balance by making monthly amortization for five years, the

first payment to be made at the end of the following month, also at

16%. Determine the monthly amortization (repayments).

4. An individual is borrowing 100,000 at 8% interest compounded

annually. The loan is to be repaid in equal annual payments over 30

years. However, just after the eighth payment is made, the lender

allows the borrower to triple the annual payments. The borrower

agrees to this increased payment. If the lender is still charging 8% per

year, compounded annually, on the unpaid balance of the loan, what is

the balance still owed just after the twelfth payment is made?

5. John borrowed a certain amount on June 1990 from Paul. Two years

later John borrowed again from Paul an amount of P5, 000. John

paid P1, 000 on June 1993 and P3,000 on June 1995. He discharged

his remaining balance by paying P7, 500 on June 1998. What was the

amount borrowed by John on June 1990 if the interest rat is 8%

compounded quarterly? (20 pts)

6. Determine the ordinary and exact simple interest on P5,000 loan for

the period form January 15, 2007 to October 12, 2008, if the rate of

interest is 8% per year. (10 pts)

7. A businessman needs P50,000 for his operations.

One financial

institution is willing to lend him the money for one year at 12.5%

interest per annum (discounted). Another lender is charging 14%,

with the principal and interest payable at the end of one year. A third

financier is willing to lend him P50,000 payable in 12 equal monthly

installments of P4,600. Which offer is best for him?

8. A certain savings-and-loan association advertises that it pays 8%

nominal interest compounded monthly.

a. If you deposit P5,000 now and plan to withdraw it in three years,

how much would your account be worth at that time?

b. If instead you decide to deposit P800 every year for three years,

how much could be withdrawn at the end of the third year?

c. Suppose that, instead, you deposit P400 every six months for

three years. What would the accumulated amount be?

9.

semiannual end-of-period deposits for 20 years. The fund is to provide

P100,000 at the end of each of the last five years of the 20-year

period. If the interest is 8% compounded semiannually, what is the

required semiannual deposit to be made?

10.

A man inherited a regular endowment of P100, 000 every end of

3 months for 10 years. However, he may choose to get a single lump

sum payment at the end of 4 years. How much is this lump sum if the

cost of money is 14% compounded quarterly?

11.

A parent on the day his child is born wishes to determine what

lump sum would have to be paid into an account bearing interest at

5% compounded annually, in order to withdraw P20, 000 each on the

childs 18th, 19th, 20th, and 21st birthdays. How much is the lump sum

amount?

12.

A price tag of P1, 200 is payable in 60 days but if paid within 30

days it will have a 3% discount. Find the rate of interest.

13.

Determine the ordinary and exact simple interest on P5,000 for

the period form January 15, 2007 to October 12, 2008, if the rate of

interest is 8%.

14.

Suppose that you borrow P1,000 from a credit company with the

agreement to repay it over a 5-year period. Their stated interest rate is 9%

per year. They show you the following items in determining the monthly

payment:

Principal --------------------------------------------P1,000

Total interest:0.09(5 years)(P1,000) ------------- 450

They ask you to pay 20% of the interest immediately, so you leave with

P1,000-90 = 910 in your pocket. Your monthly payment is calculated as

follows:

1,000 + 450 = P24.17/month

60

a. Draw a cash flow diagram of this transaction.

b. Determine the effective annual interest rate.

- emi_calculator.xlsUploaded byvinoj06
- Loan AgreementUploaded byFarisan Abdul Hamid
- T3 Set 12AUploaded byEnnovy Tsu
- Engineering EconomyUploaded byErrol John Reyes
- Complaint Facts and Issue for Collection of sum of moneyUploaded byBerniceAnneAseñas-Elmaco
- Exercise Chap 1-Chap 4Uploaded byHuong Nguyen
- Memorandum of UnderstandingUploaded bykondwani B J Manda
- 16 Metropolitan vs MariasUploaded byVina Cagampang
- Chap 010Uploaded byInsignia
- Solution for HW1(Cha 23,24,25)Uploaded byDila Estu Kinasih
- SM Chapter 10Uploaded bymas aziz
- SQC14Uploaded byscr
- welding1Uploaded byapi-237484631
- Mortgages ExposedUploaded byTom Shenstone
- description: tags: 05EACIntSessDirectFFELConsLoansUploaded byanon-874041
- Cred TransUploaded bymercibeau0000
- time payments compilation_14-14-43-00.pdfUploaded bygreycouncil
- Credit Transactions- Case ReviewerUploaded byHanzel Uy Villones
- Game Over for the BankstersUploaded byMuslimah Freeman
- handout 2.docxUploaded byLian Magat
- 37. Bautsta vs. Pilar Development CorporationUploaded bySherwin Anoba Cabutija
- Hampton Machine Tools.docUploaded byajsibal
- Bautista vs. Pilar Development Corporation, 312 SCRA 611, G.R. No. 135046 August 17, 1999Uploaded byDaezelle Faith Dizon
- EveryDayUploaded byMaricel Vigonte Manlupig
- 3200Uploaded byVương Đinh
- 1 Republic vs GrijaldoUploaded byAnonymous kCX0Fo
- 9. Republic vs GrijaldoUploaded byRomarie Abrazaldo
- CARO Checklist - Developed by PWCUploaded byapi-3705645
- Loan Loss ProvisionUploaded bytanim7
- SMEUploaded byImraan_001

- axis bankUploaded byMani Singh Randhawa
- Niculau & Rosa - CatalogoUploaded byAntonio Feliciano
- Financial ManagementUploaded byNicholas Guribie
- Technical Analysis Project of PGPM MohitUploaded bymohitalk2me
- Redactar Plan NegocioUploaded bypberdi
- Jastram the Gold StandardUploaded bySpike Chingyen
- Engineering Economy (Lecture 1)Uploaded byBenneth John Sison
- libro3Uploaded byKarina Romero Murillo
- Competitividad Laboral Karlos La SernaUploaded byObra: Alianzas por la Juventud
- INTRODUCCIÓNUploaded byJeylen Mixan Portocarrero
- Manual-de-organización-y-funciones-MOF.pptxUploaded byBetsy R. Chalco
- assignment #3.docUploaded byDanish Aman
- AssignmentUploaded byDhruv Khanna
- 29_Water Sector Gov_Shrinivas BadigerUploaded byIIMBCPP
- GESTIÓN DE INVENTARIOSUploaded byErick Quan Luna
- 0455_m15_2_2_msUploaded byeco2day
- Regimenes Tributarios MYPES.pptUploaded byMiguelon Melendez
- US Federal Reserve: b1069dUploaded byThe Fed
- 94309110 Metodos de Depreciacion ContableUploaded byjuan GUEVARA VILLALOBOS
- Social Responsibility in MarketingUploaded byMBA...KID
- Sample Questions Chapters 1-4_Strategic ManagementUploaded byHammert Runner
- Dupunt PreguntasUploaded byMarlon Josue Gonzales Coleman
- Direito Previdenciário Receita FederalUploaded byleoengenharia
- By Graham HoltUploaded bywhosnext886
- FORMATO NORMAS APA.docUploaded byAndrés Joya
- Marco teórico para el análisis de una política pública cinematográfica en los nuevos espacios del siglo XXIUploaded byJuan Manuel Maga
- Clase 1- 3ra. ParteUploaded byjesus25
- Ratios de Actividad (Gestión Financiera)Uploaded byMelissa Perez
- 4 Fundamentos Determinantes Do Cambio Modo de CompatibilidadeUploaded byMarcos Antônio
- Accenture Smartphone Post Sales ServiceUploaded byluisjarag67