Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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John makes it a habit to deposit 500 Php into a bank account every month for 15 years. The account pays 4% interest rate compounded quarterly. How much is his savings at the end of 15 years. Assuming he does not withdraw anything during the period.
1. Choose the variable being asked.
a. F
b. A
c. R
d. N
e. None of the above
2. Choose the option that contains all the given facts.
a. r=4% ; N=12 ; n=12 ; t= 15 ; F= 500
b. r=4% ; N=180 ; n=4 ; t= 15 ; A= 500
c. r=4% ; N=180 ; n=12 ; t= 15 ; A= 500
d. r=4% ; N=180 ; n=4 ; t= 15 ; R= 500
e. None of the above
3. What is the appropriate equation to solve the problem?
a. ?[((1+?/?)^?−1)/(?/?)]
b. ?[(? − (?+?/?)^(−?))/(?/?)]
c. ?(1+?/?)[(1 −(1+?/?)^(−?))/(?/?)]
d. ?(1+?/?)[((1+?/?)^? −1)/(?/?)]
e.None of the above
4.How much is his savings at the end of 15 years.
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