G. Each column in the table below is labeled, complete the table by writing the given data (in figures), theword “unknown" for the unknown data, n/a if it is not applicable in the problem.4. If Php50,000 is due at the end of 3 years at 7% compounded annually. What is its present value?PAI5. How much must be deposited today in a savings bank to accumulate Php 120,000 after 5 years ifmoney earns 6.5% compounded quarterly?PAIn6. A couple planned to build a Php 2,500,000 house after 5 years. How much should be deposited in asavings account now that pay 2.5% interest compounded monthly to have such amount in 5 years?PAI7. Nico borrowed Php 20,000 from Luke. He promised to pay the principal amount plus the interest atthe end of 2 years. If Luke charged him 2% compounded monthly, how much should Nico pay toatLuke?PAI

Introduction: Compound interest can be defined as the interest on either a loan or a deposit which…

Answered: . What is its present value?

Business

Finance

. What is its present value?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 2MC

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G. Each column in the table below is labeled, complete the table by writing the given data (in figures), the word “unknown" for the unknown data, n/a if it is not applicable in the problem. 5. How much must be deposited today in a savings bank to accumulate Php 120,000 after 5 years if money earns 6.5% compounded quarterly? P A I n 6. A couple planned to build a Php 2,500,000 house after 5 years. How much should be deposited in a savings account now that pay 2.5% interest compounded monthly to have such amount in 5 years? P A I n 7. Nico borrowed Php 20,000 from Luke. He promised to pay the principal amount plus the interest at the end of 2 years. If Luke charged him 2% compounded monthly, how much should Nico pay to Luke? P A I
For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)
G. Each column in the table below is labeled, complete the table by writing the given data (in figures), the word “unknown" for the unknown data, n/a if it is not applicable in the problem. 6. A couple planned to build a Php 2,500,000 house after 5 years. How much should be deposited in a savings account now that pay 2.5% interest compounded monthly to have such amount in 5 years? P A I 7. Nico borrowed Php 20,000 from Luke. He promised to pay the principal amount plus the interest at the end of 2 years. If Luke charged him 2% compounded monthly, how much should Nico pay to Luke? A
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