LUNA, DANICE G.

/ EGINEERING ECONOMICS / 02-20-2021 / TTHS 10:30-1:30 PM

1. Find the present worth of two (2) P10,500 payments that were made at the end of the second year
and fifth year if the interest rate money is 12%. Show the Cashflow Diagram (10pts)
2. Thirty years ago an amount of P8,000 was invested in a bank account. Today, it is worth P24,000.
What is the nominal interest rate of interest paid on this account if interest is compounded semi-
annually. Show the Cashflow Diagram (10pts)