TAKE HOME EXERCISE in BUSINESS MATH

Note: Date of Submission is on July 21,2015. Please bring your exercise notebook on my table located at
MB500.

Solve the following problems and show your complete solution. (5 points each)

1. Mr. Villa wants to have P200,000 in 4 years. How much should he invest today in a bank that
pays 8% compounded semi-annually?
2. Discount P8,750 for 4 years and 3 months at 12% compounded quarterly.
3. Determine the interest and compound amount of P70,000 for 30 months at 3.5% compounded
semi-annually.
4. Find the compound amount if P3,900 is invested for 2 years and 8 months at 10% compounded
semi annually.
5. Find the amount at the end of 15 years if P800 is invested at an interest rate of 10% converted
quarterly in the first 5 years, 9% converted semi annually in the second 5 years and 8% effective
in the last five years.
6. When is P5,025 due if its present value is P2,256 when money is worth 5% compounded semi-
annually?
7. An investment of P6,250 increases to 14,450, if invested at 6% compounded quarterly. Find the
term of investment.
8. Find the rate converted quarterly for an amount of P20,000 due in 7 years and 6 months whose
present value is P10,750?
9. What nominal rate converted semi-annually is equivalent to 61/2% effective rate?
10. What is the effective rate equivalent to 131/2% converted smi-annually?