Centino, Annie Mae S.

BSCE 2A ECON 101E

1).
Given:
P/ Cost of Machine= $50,000
n= 2 years
m= 4
i= 15 % / 100 = 0.15

Required:
I=?

Solution:
a).
r mn
F=P (1 + ¿
m
0.15 (4)(2)
I= $50,000 (1 + ¿
4
0.15 (12)
I= $50,000 (1 + ¿
4

I= $67,123.54
b).
F = P(1 + ieff) n
r
ieff = (1 + m ) m – 1

0.15
ieff = (1 + 4 ) 4– 1

ieff =0.1586
ieff =0.16

2).
MODULE 3 ECON 101E
12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

Given:
P=100,000
P= 80,000
n= 1 year
F= 100,000

Required:
i=?

Solution:
F= P(1+in)
100,000=80,000(1+i(1 year)
100,000
−1=i
80,000
1.25-1= i
0.25= i
0.25 (100%)= i

25%= i

3.
Given:
P16% = ₱620
Total of invested money= ₱20,000

Required:
P18%= ?

MODULE 3 ECON 101E

12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

Solution:
0.16x= [(20,000 – x) (1) (0.18)] 3 - 620
0.16x= [(3600)-(0.18x)] 3 - 620
0.16x= (10,800)-(0.59x)
0.16x+0.54x = 10,180
0.7x=10,180
0.7 x 10,180
=
0.7 0.7

X= ₱14,542.86
P16%= ₱14,542.86
P18%= Total - P16%
P18%= ₱20,000 - ₱14,542.86

P18%=₱5,457.14
4.
Given:
P= 110,000
n=31 days
I80% = ₱890.39

Required :
C=?

Solution:
I80% = ₱890.39
0.8I = ₱890.39
0.8 I 890.39
=
0.8 0.8
I= ₱1112.99

MODULE 3 ECON 101E

12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

I= Pin
31
1112.99= 110,000 (i)( )
360
1112.99= 9472.22 i
1112.99
i=
9472.22
i= 0.1175
i= 0.1175 (100%)

i= 11.75%

5.
Given:
P= 1,842
F=2,000
n=10 months

Required:
I=?

Solution:
F= P (1+ in)
10 x 30
2,000= 1,842 [-1+ i ( )
360
300
2,000= 1,842 [-1+ i ( )
360
5
2,000= 1,842 [-1+ i ( )
6
2,000
−1
1,842
=i
5
6
MODULE 3 ECON 101E
12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

0.1029=i
0.1029(100 % )=i
10.29 %=i

Page 5
1.
Given:
P= 50,000
r=10% / 100= 0.1
n=3
m= 4

Required:
F=?

Solution:
r mn
F= P(1+ ¿
m
0.1 (4)(3 )
F= 50,000(1+ ¿
4
0.1 (12)
F= 50,000(1+ ¿
4

F= ₱67,244.44

MODULE 3 ECON 101E

12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

2.
Given:
P= 20,000
i= 12% / 100= 0.12
n=25 years

Required:
F=?

Solution:
F= P(1+ i¿ n

F= 20,000(1+ 0.12 ¿25

F= ₱340,001.29

3.
Given:
F= 1,000,000
r= 15% / 100= 0.15
n= 5
m= 2

Required:
P=?

Solution:
r mn
F= P(1+ ¿
m
0.15 (2)(5)
1,000,000= P(1+ ¿
2
MODULE 3 ECON 101E
12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

0.15 (10)
1,000,000= P(1+ ¿
2

0.15 (10) 0.15

(1,000,000= P(1+ ¿ ) 1+
2 2

1,000,000
=P
0.15
(1+ )
2

₱485,193.93= P
4.
Given:
P= 10,000
F15years = 45,000
n=15 years
m=4

Required:
F10years = ?

Solution:
r mn
F= P(1+ ¿
m
r (4)(15)
45,000= 10,000 (1+ ¿
4
r (60 )
45,000= 10,000 (1+ ¿
4
45,000 r
=¿ (1+ ¿(60 )
10,000 4

MODULE 3 ECON 101E

12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

45,000 r
√
60

10,000
= (1+ ¿
4

45,000 r
√
60

10,000
-1 = ( )
4

45,000
r =4
√
60

10,000
-4

r= 0.10159 (100%)

r= 10.159%

5.
Given:
P=10,000
n=1

1.
[F; 12% compounded quarterly]
0.12 4
FCQ = ₱10,000 (1+ ¿
4

FCQ = ₱11.255.08

2.
r 12
₱11,255.08 = ₱10,000 (1+ ¿
12
11,255.08 r 12
= (1+ ¿
10,000 12

MODULE 3 ECON 101E

12/3/2020
Centino, Annie Mae S. BSCE 2A ECON 101E

11,255.08 r 12
√
12

10,000
= (1+
12
¿

11,255.08
√
12

10,000
−12=r

r =0.1182 ( 100 % )

r= 11.882 %

MODULE 3 ECON 101E

12/3/2020