Problem Set (2nd Quarter)

1.) How much should Jilbert invest in able to have Php750405.55 at 0.1% compounded monthly for 7.25 years?
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2.) Accumulate Php13000 for 24 years at 15% compounded monthly.

3.) What nominal rate will Php15250 accumulate to Php22050 deposited in a savings if interest is 0.50%
compounded semi-annually in 4 years?
4.) Suppose that you have 𝑃ℎ𝑃80,000. You decided to save it on a bank and will not withdraw it for 10 years. A
bank offers two types of compound interest accounts. The first account offers 6% interest compounded monthly.
The second account offers 6.5% interest compounded semi-annually. Which account will you choose if you want
your money earn more?
5.) How much should be invested in a fund each year that pays 2% compounded annually to accumulate to
𝑃ℎ𝑃150,000 in 7 years?
6.) An appliance is for sale at either (a) P15,999 cash or (b) on terms, P1,499 per month for the next 12 months.
Money is 9% compounded monthly. Which is lower, the cash price of the present value of the instalment?
7.) To pay for his debt at 12% compounded quarterly, Francis Ko committed 8 quarterly payments of 𝑃18,539.58.
how much did he borrow?
8.) Ken borrowed an amount of money from Francis. He agrees to pay the principal plus the interest by paying
𝑃25,356.55 every 3 months for 3 years. How much did he borrow if money is worth 10% compounded monthly?
9.) Kenneth buy a house and pay a down payment amounting to 𝑃100,000 with a monthly payment of P23,350.65
for 15 years at 10% compounded monthly. How much is the cash value of the house?
10.) Clay invested a certain amount of money at a simple interest rate of 3%. After 3 years, the interest he received
amounted to 5,000. How much did he invest?
11.) Michael borrowed P40,000 at 5.5% annual simple interest rate. If he decided to pay after 1 year, how much
should he pay?
12.) On his 16``th birthday, Ken started saving P2,000 every 3 months in a fund that pays 1.5% compounded
monthly. How much will be on his fund after his 21st birthday?
13.) Kenny availed of a cash loan that gave him to pay P5,000 for 1 year. The first payment is due after 6 months.
How much is the present value of the loan if interest rate is 12% converted monthly?
14.) Mr. and Mrs. Ko decided to sell their house and to deposit the fund in in a bank. After computing the interest,
they found out that they may withdraw P350,000 yearly for 4 years starting at the end of 7 years when their child
will be in college. How much is the fund deposited if interest rate is 3% converted annually?
15.) Francis converted his loan to light payments which gives him an option to pay P1,500 every month for 2
years. The first payment is due 3 months from now. How much is the amount of the loan if interest rate is 9%
converted monthly?

“They told me, I deserve the world. They told me, I deserve the stars. They told me, I
deserve the love...But, you are my world, you are my stars and you are my love, and
I don’t deserve you at all.”