No. 1. Explain the step by step solution, I do not understand excel. Thank youuu 1. Mr. Moreno started to deposit Php. 5,500 quarterly in a fundthat pays 2.5% compounded monthly. How much will be in thefund after 6 years?2. The buyer of a lot pays Php. 50,000 cash and Php. 14,500 everymonth for 10 years. If money is 8% compounded annually, howmuch is the cash value of the lot?3. How much should be invested in a fund each year paying 3%compounded semi-annually to accumulate Php. 150,000 in 6years?4. A high school student would like to save Php. 60,000 for hisgraduation. How much should he deposit in a savings accountevery 3 months for 6 years if interest rate is a 0.25%compounded monthly?5. A television (TV) set is for sale at Php. 13,499 in cash or oninstallment terms, Php. 2,599 each month for the next 6 monthsat 8.9% compounded quarterly. If you were the buyer, whatwould you prefer, cash or installment?

Note: We are providing the solution of question no.1 as specified in the first line of the question.…

Answered: Mr. Moreno started to deposit Php.…

Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How much will be in the fund after 6 years?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 23E

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Question

No. 1. Explain the step by step solution, I do not understand excel. Thank youuu

1. Mr. Moreno started to deposit Php. 5,500 quarterly in a fund
that pays 2.5% compounded monthly. How much will be in the
fund after 6 years?
2. The buyer of a lot pays Php. 50,000 cash and Php. 14,500 every
month for 10 years. If money is 8% compounded annually, how
much is the cash value of the lot?
3. How much should be invested in a fund each year paying 3%
compounded semi-annually to accumulate Php. 150,000 in 6
years?
4. A high school student would like to save Php. 60,000 for his
graduation. How much should he deposit in a savings account
every 3 months for 6 years if interest rate is a 0.25%
compounded monthly?
5. A television (TV) set is for sale at Php. 13,499 in cash or on
installment terms, Php. 2,599 each month for the next 6 months
at 8.9% compounded quarterly. If you were the buyer, what
would you prefer, cash or installment?

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Calculation of Nominal Interest with quarterly compounding:

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