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ORDINARY if the proble

ORDINARY if the proble

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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Direction: Write ORDINARY if the problem displays an ordinary annuity and GENERAL if it displays General annuity. Write the answer on the blank before the number

Direction : Write Ordinary if the problem displays an ordinary annuity and General if it displays General Annuity. Write your answer on the blank before each number. Problem Set: 1. How much is the monthly amortization on an automobile loan of Php 900,000 to be amortized over a 5-year period at a rate of 9.5% compounded monthly. 2.Teacher Kaye is saving Php 2,000 every month by depositing it in a bank that gives an interest of 1% compounded quarterly. How much will she save in 5 years? 3.A motorcycle is for sale at Php 60,000 cash or installment terms 3,000 per month for 2 years at 12% compounded annually. If you were buyer, what would you prefer? Cash or installment? 4.Belinda purchased a new car for php Php 99,000 downpayment and Php 15,000 every month. If the payments are based on 7% cpmpounded quarterly, what is the total cash price of his car? 5.Ken is paying Php 2,500 every 3 months for the amount he borrowed at an interest rate of 8% compounded quarterly . How much did he borrow if he agreed that the loan will be paid in 2 years and 6 months? 6.A store advertises a product for Php 3,000 advance payment and Php 3,000 per month for 15months. If the interest is 15% compounded monthly, what is the actual value of the product? 7.Mrs. Chan wants to buy a lot which costs 1 million pesos. She plans to give a down payment of 20% of the cost, and the rest will be paid by financing at an annual interest rate of 12% for 10 years in equal monthly installments ? How much will be the monthly payment ? 8.A condominium unit is available at Php 29,000 monthly payable in 20 years The first payment is due in 2 years exactly the time when the condominium will be turned into the buyers. How much is the cash value if the interest rate is 10% convertible monthly? 9.Mr Reyes borrowed Php 50,000 from a cooperative to start a mini-store business. If the cooperative charges simple interest of 5% , how much must Mr. Reyes pay in 3 years ? 10.Mr. Abdon bought a car and gave an initial payment of Php 180,000 as down payment. The remaining balance is to be settled by paying Php 18,000 at the end of each month for 5 years. If the interest is 10% compounded monthly, what is the cash price of his car?
Transcribed Image Text:Direction : Write Ordinary if the problem displays an ordinary annuity and General if it displays General Annuity. Write your answer on the blank before each number. Problem Set: 1. How much is the monthly amortization on an automobile loan of Php 900,000 to be amortized over a 5-year period at a rate of 9.5% compounded monthly. 2.Teacher Kaye is saving Php 2,000 every month by depositing it in a bank that gives an interest of 1% compounded quarterly. How much will she save in 5 years? 3.A motorcycle is for sale at Php 60,000 cash or installment terms 3,000 per month for 2 years at 12% compounded annually. If you were buyer, what would you prefer? Cash or installment? 4.Belinda purchased a new car for php Php 99,000 downpayment and Php 15,000 every month. If the payments are based on 7% cpmpounded quarterly, what is the total cash price of his car? 5.Ken is paying Php 2,500 every 3 months for the amount he borrowed at an interest rate of 8% compounded quarterly . How much did he borrow if he agreed that the loan will be paid in 2 years and 6 months? 6.A store advertises a product for Php 3,000 advance payment and Php 3,000 per month for 15months. If the interest is 15% compounded monthly, what is the actual value of the product? 7.Mrs. Chan wants to buy a lot which costs 1 million pesos. She plans to give a down payment of 20% of the cost, and the rest will be paid by financing at an annual interest rate of 12% for 10 years in equal monthly installments ? How much will be the monthly payment ? 8.A condominium unit is available at Php 29,000 monthly payable in 20 years The first payment is due in 2 years exactly the time when the condominium will be turned into the buyers. How much is the cash value if the interest rate is 10% convertible monthly? 9.Mr Reyes borrowed Php 50,000 from a cooperative to start a mini-store business. If the cooperative charges simple interest of 5% , how much must Mr. Reyes pay in 3 years ? 10.Mr. Abdon bought a car and gave an initial payment of Php 180,000 as down payment. The remaining balance is to be settled by paying Php 18,000 at the end of each month for 5 years. If the interest is 10% compounded monthly, what is the cash price of his car?
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