4. A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually. B: P 3 000 deposited at the beginning of each quarter for 3 years at 12% compounded quarterly.
4. A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually. B: P 3 000 deposited at the beginning of each quarter for 3 years at 12% compounded quarterly.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 22PROB
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![3. Find the amount of PS000 ordinary annuty payable quarIony for s years. Money is worst
4. Consider the given annulties:
A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually.
B: P 3 000 deposíted at the beginning of each querter for 3 years at 12% compounded quarterly.
Calculate the amount of each annulty. Compare the two annuities.
5. A mortgage of P 80 000 is to be paid by annual payment over a period of 10 years. If the interest rate is 15.8%
effective.
a) Calculate the annual payment;
b) Construct an amortization achedule;
c) Find the total payment made;
d) Find the total interest paid
6. A project requires an initial outlay of P 100 000. The relevant inflows associated with the project are P 60 000 in
year one andP 50 000 in years two and three. The appropriate discount rate for this project is 11%. Compute the
net present vafue. Should the company accept the project?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa89e51c3-9d59-49e3-bd96-1e87a9fce5e3%2Fdf4b9ba8-1e59-42d1-a967-eaa0f5962cb9%2F7wfg62n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Find the amount of PS000 ordinary annuty payable quarIony for s years. Money is worst
4. Consider the given annulties:
A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually.
B: P 3 000 deposíted at the beginning of each querter for 3 years at 12% compounded quarterly.
Calculate the amount of each annulty. Compare the two annuities.
5. A mortgage of P 80 000 is to be paid by annual payment over a period of 10 years. If the interest rate is 15.8%
effective.
a) Calculate the annual payment;
b) Construct an amortization achedule;
c) Find the total payment made;
d) Find the total interest paid
6. A project requires an initial outlay of P 100 000. The relevant inflows associated with the project are P 60 000 in
year one andP 50 000 in years two and three. The appropriate discount rate for this project is 11%. Compute the
net present vafue. Should the company accept the project?
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