An undeveloped land in Cabanatuan City, Nueva Ecija bought by XYZ Developer Corporation for ₱450,000 was held for four years and sold for ₱1,062,500. During this time property tax was paid that was, on the average, 0.4% of the purchase price. Inflation in this time period averaged 7% and the income tax was 15.2% of the long-term capital gain. What rate of return was obtained on the investment?Ferdinand deposits a sum of ₱20,000 at the interest rate of 18% compounded annually for 10 years. Find the maturity value after 10 years.A bank gives a loan to a company to purchase an equipment worth ₱1,000,000 at an interest rate of 18% compounded annually. This amount should be repaid in 15 yearly equal installments. Find the installment amount that the company has to pay to the bank.

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Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 18E

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An undeveloped land in Cabanatuan City, Nueva Ecija bought by XYZ Developer Corporation for ₱450,000 was held for four years and sold for ₱1,062,500. During this time property tax was paid that was, on the average, 0.4% of the purchase price. Inflation in this time period averaged 7% and the income tax was 15.2% of the long-term capital gain. What rate of return was obtained on the investment?
Ferdinand deposits a sum of ₱20,000 at the interest rate of 18% compounded annually for 10 years. Find the maturity value after 10 years.
A bank gives a loan to a company to purchase an equipment worth ₱1,000,000 at an interest rate of 18% compounded annually. This amount should be repaid in 15 yearly equal installments. Find the installment amount that the company has to pay to the bank.

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