Homework Help is Here – Start Your Trial Now!
Math
Algebra
nte your answers in a 1. In a certain account providing an interest rate of r compounded quarterly, P2,500 is deposited every end of the quarter. What value of r will make the future value of the account P5,200 in six months? 2. In order

nte your answers in a 1. In a certain account providing an interest rate of r compounded quarterly, P2,500 is deposited every end of the quarter. What value of r will make the future value of the account P5,200 in six months? 2. In order

Intermediate Algebra
Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
See similar textbooks
icon
Related questions
Question
mple Direction: Solve the following problems. Answer as indicated. Write your answers in a separate sheet of paper 1. In a certain account providing an interest rate of r compounded quarterly, P2,500 is deposited 000. every end of the quarter. What value of r will make the future value of the account P5,200 in six months? 2. In order to save for her high school graduation, Marie decided to save P200 at the end of each month. If the bank pays 0.250% compounded monthly, how much will her money be at the end of 6 years? 3. Paolo borrowed P100,000. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually? 4. Which Offer has a better Fair Market Value? Company A offers P150,000 at the end of 3 years plus P300,000 at the end of 5 years. Company B offers P25,000 at the end of each quarter for the next 5 years. Assume that money is worth 8% compounded annually. COMPANY B COMPANYA P25,000 at the end of each P150,000 at the end of 3 years quarter for 5 years P300,000 at the end of 5 years 5. Kat received two offers for investments. The first one is P150,000 every year for 5 years at 9% compounded annually. The other investment scheme is P12,000 per month for 5 years with the same interest rate. Which fair market value between these offers is preferable?
Transcribed Image Text:mple Direction: Solve the following problems. Answer as indicated. Write your answers in a separate sheet of paper 1. In a certain account providing an interest rate of r compounded quarterly, P2,500 is deposited 000. every end of the quarter. What value of r will make the future value of the account P5,200 in six months? 2. In order to save for her high school graduation, Marie decided to save P200 at the end of each month. If the bank pays 0.250% compounded monthly, how much will her money be at the end of 6 years? 3. Paolo borrowed P100,000. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually? 4. Which Offer has a better Fair Market Value? Company A offers P150,000 at the end of 3 years plus P300,000 at the end of 5 years. Company B offers P25,000 at the end of each quarter for the next 5 years. Assume that money is worth 8% compounded annually. COMPANY B COMPANYA P25,000 at the end of each P150,000 at the end of 3 years quarter for 5 years P300,000 at the end of 5 years 5. Kat received two offers for investments. The first one is P150,000 every year for 5 years at 9% compounded annually. The other investment scheme is P12,000 per month for 5 years with the same interest rate. Which fair market value between these offers is preferable?
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Intermediate Algebra
Intermediate Algebra
Algebra
ISBN:
9780998625720
Author:
Lynn Marecek
Publisher:
OpenStax College
SEE MORE TEXTBOOKS