Answered: Solve each of the following completely.…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

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Solve each of the following completely. 1. Find the compound amount and compound interest in Php62,000 at the end of 3 years at 8% compounded quarterly. 2. Accumulate Php35,000 at 9% compounded bi-monthly for 3 years. Find the compound amount and compound interest. 3. On October 1, 2012, Allan borrowed Php20,000 at 8% compounded quarterly. How much will he pay if he will settle his loan on April 1, 2015? 4. Frederick invested Php80,000 for 8 years and 9 months at 12% compounded annually. Find the amount due on maturity date using the direct substitution method and the practical method. 5. Find the future value at the end of 8 years of Php18,000 if it earns 8% compounded quarterly over the first one-third of the 9-year term, 10% effective interest over the next one-third term, and 12% compounded semi-annually on the remaining period of the term. 6. Discount Php15,000 for 4 years at 9% compounded monthly. 7. Find the amount that should be invested to accumulate to Php80,000 in 5 years if money is worth 9% compounded bi-monthly. 8. Find the present value of Php36,000 at 10% compounded semi-annually for 6 years and 4 months using the direct substitution method and the practical method. 9. At what rate compounded semi-annually will Php18,000 amount to Php65,000 in 9 years? 10. Find the nominal rate compounded quarterly where Php12,000 will become Php45,000 in 8 years. 11. Find the effective rate for Php15,000 to become Php80,000 in 8 years. 12. How long will it take for Php8,000 to accumulate to Php15,000 at 12% compounded monthly? 13. When Hyzel was 10, her father deposited Php20,000 in her account at 6% compounded monthly. How old is she when the deposit amounted to Php300,000? 14. Princess deposited Php15,000 at 6% compounded annually. How long was the money deposited if it earned a compound interest of P33,107? 15. Find the effective rate equivalent to 15% nominal rate compounded monthly. 16. When will P18,000 amount to Php49,000 if money is worth 8% compounded continuously?

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