1. Manda Bamkeng deposits Php 50,000 every beginning of the month for 4 years with 2% compounded quarterly interest. How much will be the present value of his money? 2. Kratos is now 55 years old now and he is willing to invest a lump sum amount today at 4% compounded annually interest so that he can receive a pension amount of Php 3,000 every month for 10 years by the time he retires at 60 years old. If the interest rate at the time he receives the monthly payout changes to 3.5% compounded annually, how much does he need to invest today to receive such monthly pension? 3. Sarah is the eldest among the siblings. She uses credit cards in paying for their family's housing rent, food, and education. In January, she spent Php 3,000 for the rent with 1.5% compounding monthly interest, Php 10,000 for food with 2.5% compounding monthly interest, and Php 40,000 for education with 1.8% compounding monthly interest. If she will pay all the expenses after four months with her salary worth Php 57,150, will she be able to repay her loans?
1. Manda Bamkeng deposits Php 50,000 every beginning of the month for 4 years with 2% compounded quarterly interest. How much will be the present value of his money? 2. Kratos is now 55 years old now and he is willing to invest a lump sum amount today at 4% compounded annually interest so that he can receive a pension amount of Php 3,000 every month for 10 years by the time he retires at 60 years old. If the interest rate at the time he receives the monthly payout changes to 3.5% compounded annually, how much does he need to invest today to receive such monthly pension? 3. Sarah is the eldest among the siblings. She uses credit cards in paying for their family's housing rent, food, and education. In January, she spent Php 3,000 for the rent with 1.5% compounding monthly interest, Php 10,000 for food with 2.5% compounding monthly interest, and Php 40,000 for education with 1.8% compounding monthly interest. If she will pay all the expenses after four months with her salary worth Php 57,150, will she be able to repay her loans?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 11E
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Transcribed Image Text:1. Manda Bamkeng deposits Php 50,000 every beginning of the month for 4 years with
2% compounded quarterly interest. How much will be the present value of his money?
2. Kratos is now 55 years old now and he is willing to invest a lump sum amount today at
4% compounded annually interest so that he can receive a pension amount of Php 3,000
every month for 10 years by the time he retires at 60 years old. If the interest rate at the
time he receives the monthly payout changes to 3.5% compounded annually, how much
does he need to invest today to receive such monthly pension?
3. Sarah is the eldest among the siblings. She uses credit cards in paying for their family's
housing rent, food, and education. In January, she spent Php 3,000 for the rent with 1.5%
compounding monthly interest, Php 10,000 for food with 2.5% compounding monthly
interest, and Php 40,000 for education with 1.8% compounding monthly interest. If she
will pay all the expenses after four months with her salary worth Php 57,150, will she be
able to repay her loans?
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