Answered: A.) Mr. Jones has P 1,000,000 that he…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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II. Show clean and complete details of your work for each number.
A.) Mr. Jones has P 1,000,000 that he wishes to distribute to his son at a rate of
P 100,000 per year. If the P 1,000,000 is deposited in a bank account that earns 4%
interest per year, how many years will it take for his son to completely receive the
account?

B.) A new employee who is now 20 years old is planning to have personal savings totaling
P 1,500,000 when he retires at the age of 60. If the annual interest rate is 8%
compounded monthly over the next 40 years, how much must he save each month to
accomplish his goal?

5. It is a common practice in lending companies that the interest is deducted at the time
money is borrowed. Mr. Anito applied a loan amount of P 50,000 with an interest rate
of 16% per year. During the time he received the money, the 16% interest is being
deducted and he received only P 42,000. At the end of one year, Mr. Anito has to
pay P 50,000. What is the actual rate of interest?

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