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Mr. Ramos buys a tricycle for P50,000 cash or on installment. The installment plan requires a down payment of P30,000 and payments of P8,000 after 1 year and P7,000 after 2 years. The question asks to calculate the final payment after 3 years if the interest rate is 7% effective annually. Fred owes various debts with different due dates and interest rates. He made a payment of P3,000 after 3 years and will make two equal payments after 4.5 years and 6 years. The question is to calculate the size of each payment if the interest rate is 10% compounded annually. Four debts with different principal amounts and due dates at various interest

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Vincent Larrie Moldez
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168 views

Assignment

Mr. Ramos buys a tricycle for P50,000 cash or on installment. The installment plan requires a down payment of P30,000 and payments of P8,000 after 1 year and P7,000 after 2 years. The question asks to calculate the final payment after 3 years if the interest rate is 7% effective annually. Fred owes various debts with different due dates and interest rates. He made a payment of P3,000 after 3 years and will make two equal payments after 4.5 years and 6 years. The question is to calculate the size of each payment if the interest rate is 10% compounded annually. Four debts with different principal amounts and due dates at various interest

Uploaded by

Vincent Larrie Moldez
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment

1. Mr. Ramos buys a tricycle worth P50,000 if paid in cash. On installment basis, he pays
P30,000 down, P8,000 at the end of 1 year, P7,000 at the end of 2 years and a final
payment at the end of 3 years. If money is worth 7% effective, what is the final
payment? (Use the end of 3 years as the focal date.)

2. Fred owes the following obligations:

a. P3,000 due at the end of 1 ½ years at 9%, m = 4


b. P4,500 due at the end of 4 years at 12% simple interest
c. 8,000 due at the end of 6 years at 8%, m = 2

He paid $3,000 at the end of 3 years and promised to make two equal payments each at
the ends of 4 ½ years and 6 years. What is the size of each payment if money is worth
10%, m = 4? (Use the end of 5 years as the comparison date.)

3. If money is worth 15% compounded monthly, what equal payments at the end of 24 th,
and 32nd months, respectively, will equitably settle the following obligations:
a. P11,000 due in 5 months,
b. P12,200 due in 12 months at 7%, m =4
c. P18,800 due in 36 months at 8% simple interest
d. P24,400 due in 48 months at 6%, m = 12

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