BES212 Problem Set

What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360

days.

[Round-off up to 2 decimal places, with the correct unit/sign, no spaces]

How long will it take money to double itself if invested at 5% compounded annually? Express your answers in years.

[Round-off up to 2 decimal places]

A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he

plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes,

what will be the amount of money left in the bank after one year of his withdrawal? Effective

annual interest rate is 10%.

[Round-off up to 2 decimal places, comma after every 3 digits, and disregard currency sign, no spaces]

What annuity is required over 12 years to equate with a future amount of P 20,000? Assume i=

6% annually.

[Round-off up to 2 decimal places, comma after every 3 digits, and disregard currency sign, no spaces]

A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer

uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the

final payment will cancel the debt for principal and interest. What is the annual payment?

[Round-off up to 2 decimal places, comma after every 3 digits, and disregard currency sign, no spaces]

A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay

his obligations by paying 8 equal annual payments, the first being due at the end of 10 years.

Find the annual payments.

[Round-off up to 2 decimal places, comma after every 3 digits, and disregard currency sign, no spaces]

An amount of P 200,000 is deposited for a period of 8 years. Compute the interest if it was made at 18% compounded continuously.

[Round-off up to 2 decimal places, comma after every 3 digits, and disregard currency sign, no spaces]

A man paid a 10% down payment of P 200,000 for a house and lot and agreed to pay the balance in monthly installments for 5 years at an interest rate of 15% compounded monthly. What was the monthly installment in pesos?

[Round-off up to 2 decimal places, comma after every 3 digits, disregard currency sign, no spaces]

How many years will P 100,000 earned a compound interest of P 50,000 if the interest rate is 9% compounded quarterly?

[Express your answers in years. Round-off up to 2 decimal places]

How many years will a deposit triple itself at an interest rate of 7% per annum compounded continuously?

[Express your answers in years. Round-off up to 2 decimal places]