Solve the following.1. A small business owner Borrowed Php8,500.00 at 9% for 18 months. How much interest will berepaid upon maturity of the loan?2. If Php5,255.60 is the present value of Php6,350,00 which due at the end of 10 months, find thesimple interest rate?3. How many months will it take for Php10,000.00 to earn Php890.00 if it is invested at 8% simpleinterest?4. Find the interest and amount on Php9,700.00 at 4 % for three months.5. At what rate must Php7,900.00 be invested to accumulate to Php10,600.00 in 120 days?6.What is the future value of PhP10,000 after three years at 10% compounded semi-annually?7. XYZ Bank is offering to double your money. If you invest PhP 1,500 at 6% interest compoundedquarterly, how long will it take to double your money?8. Daryl wants to have a total of P4000 in two years so that he can have an upgrading of his bike.He finds an account that pays 5% interest compounded monthly. How much should Daryldeposit into his account so that he will have P4000 at the end of two years?9. Mr. Yu invested his PhP5000 at 20% interest compounded quarterly for one year. Find thefuture value. How much interest is earned?10. Mr. Jose De Los Angeles deposits Php3,500 every end of the month at ABC Network Bank thatcredits 2.4% monthly for 6 months. How much does he have at the end of 6 months?11. Mrs. Sally Escudero plans to travel abroad with her family. What amount should she save at theend of each month if a bank credits 1.44 % compounded monthly for 3 years in order toaccumulate the P250,000 that she needs for her plan?12. An investment of Php1,500 is made at the beginning of each year for 8 years. Find the totalinvestment at the end of the term if money is worth 4.6 % compounded annually.13. A machine can be bought for Php4,000 down payment and 8 equal monthly payments ofPhp1,200 payable every beginning of the month. If money is worth 6% compounded monthly,find the cash equivalent of the machine.14. How much is the cash equivalent of an electronic product that can be purchased by payingdown payment of Php 5,000 and Php2500 payable at the end of each quarter for 2 years and 9months? The money is worth 4.5% compounded quarterly.

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Answered: 1. A small business owner Borrowed…

1. A small business owner Borrowed Php8,500.00 at 9% for 18 months. How much interest will be repaid upon maturity of the loan?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Question

Solve the following.
1. A small business owner Borrowed Php8,500.00 at 9% for 18 months. How much interest will be
repaid upon maturity of the loan?
2. If Php5,255.60 is the present value of Php6,350,00 which due at the end of 10 months, find the
simple interest rate?
3. How many months will it take for Php10,000.00 to earn Php890.00 if it is invested at 8% simple
interest?
4. Find the interest and amount on Php9,700.00 at 4 % for three months.
5. At what rate must Php7,900.00 be invested to accumulate to Php10,600.00 in 120 days?
6.
What is the future value of PhP10,000 after three years at 10% compounded semi-annually?
7. XYZ Bank is offering to double your money. If you invest PhP 1,500 at 6% interest compounded
quarterly, how long will it take to double your money?
8. Daryl wants to have a total of P4000 in two years so that he can have an upgrading of his bike.
He finds an account that pays 5% interest compounded monthly. How much should Daryl
deposit into his account so that he will have P4000 at the end of two years?
9. Mr. Yu invested his PhP5000 at 20% interest compounded quarterly for one year. Find the
future value. How much interest is earned?
10. Mr. Jose De Los Angeles deposits Php3,500 every end of the month at ABC Network Bank that
credits 2.4% monthly for 6 months. How much does he have at the end of 6 months?
11. Mrs. Sally Escudero plans to travel abroad with her family. What amount should she save at the
end of each month if a bank credits 1.44 % compounded monthly for 3 years in order to
accumulate the P250,000 that she needs for her plan?
12. An investment of Php1,500 is made at the beginning of each year for 8 years. Find the total
investment at the end of the term if money is worth 4.6 % compounded annually.
13. A machine can be bought for Php4,000 down payment and 8 equal monthly payments of
Php1,200 payable every beginning of the month. If money is worth 6% compounded monthly,
find the cash equivalent of the machine.
14. How much is the cash equivalent of an electronic product that can be purchased by paying
down payment of Php 5,000 and Php2500 payable at the end of each quarter for 2 years and 9
months? The money is worth 4.5% compounded quarterly.

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