1. Compute the initial value of the money if the borrower needs deposit the accumulated amount of P59, 137 to the bank after 8 months and 24 days if the money has the interest rate of 19% per annum. 2. What is the equivalent percent of 20% compounded quarterly if converted to compounded monthly? 3. The Philippine Association of Board Examiners (PABE) desires to award a P1,600 scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started July 1, 1977 by a donor in the amount of P24,000. The PABE invested this sum at that time at 4% per annum and plans on adding P200 each year to the fund from its dues Starting July 1, 1978 for as long as awards are made. A. For how many years starting July 1, 1978 can scholarship be awarded? B.What will be the balance in the fund after the last award was made?
1. Compute the initial value of the money if the borrower needs deposit the accumulated amount of P59, 137 to the bank after 8 months and 24 days if the money has the interest rate of 19% per annum. 2. What is the equivalent percent of 20% compounded quarterly if converted to compounded monthly? 3. The Philippine Association of Board Examiners (PABE) desires to award a P1,600 scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started July 1, 1977 by a donor in the amount of P24,000. The PABE invested this sum at that time at 4% per annum and plans on adding P200 each year to the fund from its dues Starting July 1, 1978 for as long as awards are made. A. For how many years starting July 1, 1978 can scholarship be awarded? B.What will be the balance in the fund after the last award was made?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Transcribed Image Text:1. Compute the initial value of the money if
the borrower needs deposit the
accumulated amount of P59, 137 to the
bank after 8 months and 24 days if the
money has the interest rate of 19% per
annum.
2. What is the equivalent percent of 20%
compounded quarterly if converted to
compounded monthly?
3. The Philippine Association of Board
Examiners (PABE) desires to award a P1,600
scholarship annually to deserving students
for as long as its scholarship fund shall last.
The fund was started July 1, 1977 by a
donor in the amount of P24,000. The PABE
invested this sum at that time at 4% per
annum and plans on adding P200 each year
to the fund from its dues Starting July 1,
1978 for as long as awards are made.
A. For how many years starting July 1, 1978
can scholarship be awarded?
B.What will be the balance in the fund after
the last award was made?
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