559. 1. Compute the nominal interest rate. 2. Determine how much will she receive at the end of 20 years. 3. Determine the worth of the sinking fund factor in this fund invested.
559. 1. Compute the nominal interest rate. 2. Determine how much will she receive at the end of 20 years. 3. Determine the worth of the sinking fund factor in this fund invested.
Chapter9: Obtaining Affordable Housing
Section: Chapter Questions
Problem 5DTM
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Question
Provide manual solutions for below mentioned problems.
A social worker deposits a uniform amount of P12,000 at the end of each year in order to get a lump sum of money by the time she will retire at the end of 20 years. If the compound amount factor for this
1. Compute the nominal interest rate.
2. Determine how much will she receive at the end of 20 years.
3. Determine the worth of the sinking fund factor in this fund invested.
Answer. 1. 6% 2. P441,427.08 3. 0.027184557
Transcribed Image Text:Problem 1
A social worker deposits a uniform amount of P12,000 at the cnd of cach ycar in order to get a
lump sum of money by the time she will retire at the end of 20 years. If the compound amount
factor for this annuity is equal to 36.78559.
1. Compute the nominal interest rate.
2. Determine how much will she receive at the end of 20 years.
3. Determine the worth of the sinking fund factor in this fund invested.
Ans.
1. 6%
2. P441,427.08
3. 0.027184557
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