8. Jones Corporation borrowed P9,000 from Brown Corporation on Jan. 1, 1978 and P12,000 on Jan. 1,1980. Jones Corporation made a partial payment of P7,000 on Jan. 1, 1981. It was agreed that the balanceof the loan would be amortized by two payments, one on Jan. 1, 1982 and the other on Jan. 1, 1983, thesecond being 50% larger than the first. If the interest rate is 12%, what is the amount of each payment?a. P 8,769.35, P13,154.03b. P6,788.13, P10,182.20c. P 9,563.23, P14,344.85d. P9,136.91, P13,705.369. If P5,000 is invested now at an interest rate of 9% compounded continuously, how much would be at theend of 8 years.a. P 9,875.8b. P10,272.2c. P 12,072.4d. P 13,773.510. Find the effective rate of interest for an investment that earns 5 1/2% per year, compounded continuouslya. 75 %b. 5.65 %c. 8.74 %d. 9.12 %

"Since you have asked multiple questions, we will solve the first question for you. If you want any…

Answered: 8. Jones Corporation borrowed P9,000…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. A fund for replacement of machinery in a plant must contain P30,000 at the end of 9 years. If the fund is invested at 3.5% compounded semi-annually, what equal deposits should be placed in the fund at the end of each 6 months for the first four years? a. P2,964.64 b. P2,892.42 c. P3,122.38 d. P3,262.42
For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two alternative payment plans in gradient series with 35 years of payment horizon Base payment of $1000 at the end of the first year, and at the end of every next year, the payment size will be increased by $25 compared to the previous year. Base payment of $800 at the end of the first year, and at the end of every next year, the payment size will be increased by a constant $x compared to the previous year. What is x? Choose the closest value to your answer. For a principal borrowed under %14 nominal interest rate, compounded annually, a bank offers two alternative payment plans in gradient series with 35 years of payment horizon Base payment of $1000 at the end of the first year, and at the end of every next year, the payment size will be increased by $25 compared to the previous year. Base payment of $800 at the end of the first year, and at the end of every next year, the payment size…
he state of Florida sold a total of $36.1 million worth of lottery tickets at $1 each during the first week of January 2007. As prize money, a total of $41 million will be distributed over the next 21 years ($1,952,381 at the beginning of each year). The distribution of the first-year prize money occurs now, and the remaining lottery proceeds are put into the state’s educational reserve funds, which earn interest at the rate of 6% compounded annually. After the last prize distribution has been made (at the beginning of year 21), how much will be left over the reserve account? (withouth using the excel formulas please!)
Lourdes has just retired and plans to consume $14257 from the retirement account every year for the next 12 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9.6% compounded semiannually, how much does Lourdes have in the retirement account today? Round off interest rate to six decimal places.
20 - What is the total amount of money to be repaid at the end of 3 years for the loan of 160 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%?A) 243 340B) 245 700C) 247 500D) 246 125E) 244 175
9. A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2300653 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit? Draw the cash flow diagram and use interest rate with five decimal places. DONT USE EXCEL. USE MANUAL SOLVING
27. A businessman borrowed P300,000 and agrees to discharge his obligation by paying a series of 8 equal payments of P 57,434.78 the first being due at the end of 5 ½ years. Find the rate of interest he is paying if it is compounded semi-annually.
A loan of $18,000 is to be financed over a period of 24 months. The agencyquotes a nominal interest rate of 8% for the first 12 months and a nominal interest rate of 9% for any remaining unpaid balance after 12 months with both rates compounded monthly. At these rates, what equal end-of-the-month payment for 24 months would be required in order to repay the loan?
You deposit $100 now, and another $100 at the end of 20 years. The account earns a nominal discount rate of 4% compounded monthly for the first 20 years, and a nominal discount rate of d(52) compounded weekly thereafter. If the account has $700 at the end of 40 years then find this nominal discount rate compounded weekly.
Q5-Mr. and Mrs. Lacks want to collect money for college expenses in a bank at 9% interest rate compounded monthly for their new-born daughter Henrietta. Mr. and Mrs Lacks transfer 7% and 5% of their salaries, respectively, to the savings account every month. Henrietta will go to college at her 18. Each year expense for the college is $40 000 for 5 years and the minimum accepted rate of return is 3%. Mr. Lacks expects to get raise once in every 2 years at about 8% of his salary. If monthly salary of Mrs. Lacks is $ 1500, how much money Mr. Lacks should make during the first 2 years to cover the 5-year college expenses? Ps. Raise will be applied in the first month at every second year. Yearly college expenses will be paid at the end of the year.)
A factory operator bought a diesel generator set for P10,000 and agreed to pay the dealer uniform sum at the end of each year for five years at 8% compounded annually, that the payment will cancel the debt and principal interest. What is the annual payment? Provide given, formula and complete solution
What would be the annual Social Security System (SSS) contribution for a 30-year old employee to receive a lump sum of P1,000,000 at the age of 60 and an annual pension of P60,000 after 5 years? The interest rate is 10%. (B). give the cash flow diagram

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