1. Jessica buys a television set from a merchant who asks P14,000.00 at the end of 80 days. She wishes to pay the merchant immediately and the money assumed 10% of simple interest. What is the cash price today? Draw the cash flow diagram.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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1. Jessica buys a television set from a merchant who asks P14,000.00 at
the end of 80 days. She wishes to pay the merchant immediately and the
money assumed 10% of simple interest. What is the cash price today?
Draw the cash flow diagram.
2.How long does it takes a principal of P25,000 at a simple interest rate
of 5% per year to become P30,000? Draw the cash flow diagram.
3. Determine the ordinary and exact simple interest on $5,000 for the
period from January 15 to June 20,2015 if the rate of simple interest is
14%
4. 13. What payment X 10 years from now is equivalent to a payment of
P500,000 7 years from now, if interest rate is 12% compounded
semi-annually?
5. A factory operator bought a diesel generator set for P10,000 and
agreed to pay the dealer uniform sum at the end of each year for five
years at 8% compounded annually, that the payment will cancel the debt
and principal interest. What is the annual payment?
Transcribed Image Text:1. Jessica buys a television set from a merchant who asks P14,000.00 at the end of 80 days. She wishes to pay the merchant immediately and the money assumed 10% of simple interest. What is the cash price today? Draw the cash flow diagram. 2.How long does it takes a principal of P25,000 at a simple interest rate of 5% per year to become P30,000? Draw the cash flow diagram. 3. Determine the ordinary and exact simple interest on $5,000 for the period from January 15 to June 20,2015 if the rate of simple interest is 14% 4. 13. What payment X 10 years from now is equivalent to a payment of P500,000 7 years from now, if interest rate is 12% compounded semi-annually? 5. A factory operator bought a diesel generator set for P10,000 and agreed to pay the dealer uniform sum at the end of each year for five years at 8% compounded annually, that the payment will cancel the debt and principal interest. What is the annual payment?
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