𝐴[(1 + 𝑖)𝑛 − 1

𝟏) 𝐹 =
𝑖
0.10 50(12)
𝐴[(1 + ) − 1]
5000000 = 12
0.10
12
A= $ 288.61

2-3)
First investment
𝐹 = 𝑃 (1 + 𝑖)𝑛

37200 = 𝑃(1 + 4𝑖)3

37200
𝑃=
(1 + 4𝑖)3
Second investment
𝐹 = 𝑃 (1 + 𝑖)𝑛

24000 = 𝑃(1 + 𝑖)10

24000
𝑃=
(1 + 𝑖)10

37200 24000
3
+ = 50000
(1 + 4𝑖) (1 + 𝑖)10
i = .0185 / 1.85% (2nd investment)
4i = 0.074/7.4% (1st investment)

Substituting the values:

1st investment:
37200 37200
𝑃= = = ₱ 𝟑𝟎, 𝟎𝟐𝟖. 𝟐𝟓𝟓𝟎
(1 + 4𝑖)3 (1 + 4(0.0185))3

2nd investment
24000 24000
𝑃= 10
= = ₱ 𝟏𝟗, 𝟗𝟖𝟎. 𝟐𝟒𝟗𝟔
(1 + 𝑖) (1 + (0.0185))10
4-5)
Option 1

𝐴[(1 + 𝑖)𝑛 − 1 5000000[(1 + 0.09)20 − 1]

𝐹= = = $ 𝟐𝟓𝟓, 𝟖𝟎𝟎, 𝟓𝟗𝟖. 𝟐
𝑖 0.09
Option 2

𝐹 = 𝑃(1 + 𝑖)𝑛 = 40,000,000(1 + 0.09)20 = $ 224,176,430.7

The best option is number 1.

Difference = $ 255,800,598.2 − $ 224,176,430.7 = $ 𝟑𝟏, 𝟔𝟐𝟒, 𝟏𝟔𝟕. 𝟒𝟗

6-8)

𝐹 = 𝑃(1 − 𝑖)𝑛 = 50,000(1 − 0.05)5 = $ 𝟑𝟖, 𝟔𝟖𝟗. 𝟎𝟒𝟔𝟗

𝐹 50000
𝑃= 𝑛
= = $ 𝟑𝟗, 𝟏𝟕𝟔. 𝟑𝟎𝟖𝟑
(1 + 𝑖) (1 + 0.05)5

9)
2,000,000
𝑐𝑎𝑝𝑖𝑡𝑎𝑙𝑖𝑧𝑒𝑑 𝑐𝑜𝑠𝑡 = 25,000,000 + = ₱ 𝟒𝟏, 𝟔𝟔𝟔, 𝟔𝟔𝟔. 𝟔𝟕
0.12

10)

3000[(1 + 0.09)8 − 1] 700[(1 + 0.09)8 − 1] 700

𝑃 = 10,000 − 8
(1 − 0.53) + 8
(1 − 0.53) −
(1 + 0.09) (0.09) (1 + 0.09) (0.09) (1 + 0.09)8
P =$ 3,765.93

11)
1 1
𝑃 = −5000 + (45000 − 25000)(1 − 0.53) ( ) + 1000 ( ) = $ 𝟒𝟒𝟓𝟒. 𝟓𝟑
1 + 0.10 1 + 0.10

12) tax credit = 0.20(5000) = $ 1000

13)
𝐴 $75
𝑃= = = $𝟏, 𝟐𝟓𝟎
𝑖 0.06

14)

1000+1.5x=15000+0.50x
x = 14000 units

15)
𝑦𝑟
14000 𝑢𝑛𝑖𝑡𝑠 𝑥 = 𝟐. 𝟖 𝒚𝒆𝒂𝒓𝒔
5000 𝑢𝑛𝑖𝑡𝑠

16)

𝐹 = 𝑃(1 + 𝑖)𝑛 = (10000)(1 + 0.15)4 = $ 𝟏𝟒, 𝟒𝟗𝟎. 𝟎𝟔

17)

SLM
𝐶𝑜 − 𝐶𝑛 $1000 − $130
𝑑= = = $72.5
𝑛 12
𝐶8 = 𝐶𝑜 − 𝐷8 = $1,000 − ($ 72.5)(8) = $ 𝟒𝟐𝟎

18)

$1000[(1 + 0.10)10 − 1] $1000

+ = $𝟏𝟔, 𝟏𝟒𝟒. 𝟓𝟕
(1 + 0.10)(0.10) 0.10

19)

0.08 5(2)
𝐹 = 𝑃(1 + 𝑖)𝑛 = (1000) (1 + ) = $ 𝟏𝟒𝟖𝟎. 𝟐𝟒
2

20)

𝐹 = 𝑃(1 + 𝑖)𝑛 = (10000)(1 + 0.08)10 = $ 𝟏𝟎, 𝟕𝟗𝟒. 𝟔𝟐𝟓