Instruction: Answer the following questions. Write your answer in the space provided. (A5) 1. By condition of a will, the sum of P 2,000 is left to a girl to be held in trust fund by her guardian until it amounts to P 50,000. When will the girl received the money if the fund is invested at 8% compounded quarterly? 2. When will the amount be tripled with an interest of 11.56%? 3. A man borrowed P 1,000,000 at interest rate of 12% per annum compounded quarterly. What is the effective rate?

Instruction: Answer the following questions. Write your answer in the space provided. (A5) 1. By condition of a will, the sum of P 2,000 is left to a girl to be held in trust fund by her guardian until it amounts to P 50,000. When will the girl received the money if the fund is invested at 8% compounded quarterly? 2. When will the amount be tripled with an interest of 11.56%? 3. A man borrowed P 1,000,000 at interest rate of 12% per annum compounded quarterly. What is the effective rate?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.2IP

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