Jeanelle is planning to borrow money amounting to ₱ 250,000.00 Limbon Rural Bank is offering 1.25% compounded semi – annually, while Buli Cooperative Bank offers 1% compounded monthly. 11.How much will be the maturity value after 5 years if he borrows from Limbon Rural Bank? a. ₱ 266,071.86 b. ₱ 207,660.68 c. ₱ 367,071.88 d. ₱ 376,716. 66
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- 1. Compute the initial value of the money if the borrower needs deposit the accumulated amount of P59, 137 to the bank after 8 months and 24 days if the money has the interest rate of 19% per annum. 2. What is the equivalent percent of 20% compounded quarterly if converted to compounded monthly? 3. The Philippine Association of Board Examiners (PABE) desires to award a P1,600 scholarship annually to deserving students for as long as its scholarship fund shall last. The fund was started July 1, 1977 by a donor in the amount of P24,000. The PABE invested this sum at that time at 4% per annum and plans on adding P200 each year to the fund from its dues Starting July 1, 1978 for as long as awards are made. A. For how many years starting July 1, 1978 can scholarship be awarded? B.What will be the balance in the fund after the last award was made?Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 will be closest to:a. $4280b. $3975c. $3850d. $2335Jeanelle is planning to borrow money amounting to ₱ 250,000.00 Limbon Rural Bank is offering 1.25% compounded semi – annually, while Buli Cooperative Bank offers 1% compounded monthly. 12.How much will be the maturity value after 5 years if he borrows from Buli Cooperative Bank? a. ₱ 207,560.78 b. ₱ 262,812.30 c. ₱ 376,431.54 d. ₱ 386,221.32 13.What will be the interest after 5 years if he borrows from Limbon Rural Bank? a. ₱ 126,716.66 b. ₱ 117,071.88 c. ₱ 42,339.32 d. ₱ 16,071.86 14.What will be the interest after 5 years if he borrows from Buli Cooperative Bank? a. ₱ 136,221.32 b. ₱ 126,431.54 c. ₱ 12,812.30 d. ₱ 2,812.53 15.Which bank offers the smaller interest? a. Both b. None c. Limbon Rural Bank d. Buli Cooperative Bank
- Someone is borrowing from a five-six ( Bumbay ) money lender. How much will be charged if you want to loan ₱ 5,000.00, payable in one year? Determine the interest rate per period and the annual interest rate. Is it a good loan term? Why or why not?A bank offers a home buyer a 25-year loan at 7% per year. If the home buyer borrows $150,000 from the bank, how much must be repaid every year? A. $15,445.90 B. $12,871.58 C. $20,594.53 D. $18,020.212. Solve the following problem on Deferred Annuity (Round all amounts to the closest centavo) a. Find the present value of 12 quarterly payments of P12,000.00 each. If the interest rate is 9 percent compounded quarterly, the first payment will be due after one year from the loan date. 3. The money of a millionaire was placed in two different banks. He made a Php 30,000,000 investment in Bank A, which offers a 6 percent interest rate that is compounded semi-annually. He also made an investment of Php 40,000,000 in Bank B, which offers interest at a rate of 7 percent per year compounded annually. Which of the two investments will provide a greater yield in three years? Please justify your response.
- Suppose that you borrow$ 12000 at interest rate of 5% per year. If you must be repaid the loan in equal end of year payments over the next 4 years, how much must you repay at the end of each year? O a. $3672 Ob. $3384 Oc. $2672 O d. $238422. A business loan worth P150,000 is to repay in quarterly installment for 2 years. How much is the quarterly payment if money is worth 7% converted quarterly? A. P35,500 В. Р37,500 С. Р38,500 D. P39,50 23. Dina decided to purchase a P1,500,000 house and lot. After deducting the down payment, the mortgage amount is P1,000,000. If the interest is at 10% compounded monthly, how much is the monthly installment if they plan to amortize the loan in 25 years? A. P9,000.25 B. P9,031.25 C. P9,051.25 D. P9,061.25 24. If a car loan of P500,000 requires a 30% down payment. How much is the mortgage? Д 350,000 B. P360,000 C. P670,000 D. P680,000Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 is closest to: (a) $4280 (b) $3975 (c) $3850 (d) $3690
- (c) Alata Kwaku borrowed ¢2,130 from his uncle and promised to pay him ¢2,720 after 2 years. With annual compounding, find the implied annual rate of interest for this loan.(d) Oberima Adonteng’s bank account pays 8.8% annual interest, compounded monthly. If the present value is ¢2, its future value is ¢4. How long will it take the money to double in the account?A. A man having a debt of ₱2000.00 agrees to pay it at the end of 7 years. At due, he must pay a sum with an interest of ₱750.00. What is the agreed rate of interest compounded quarterly? Ans: 4.58% B. A laptop from an online shop will cost ₱3000.00 if agreed terms is 10% compounded quarterly for a year. What is the cash price today of the calculator? Ans: ₱2717.8515. Helen Barns wishes to purchase a new home and borrows $389,000 with a repayment plan of 25 annual equal installments, paid at the end of the year. If the bank is offering an interest rate of 14% wat is the annual payment? Rent N = $56,599 25 i = 14% PV of ordinary Annuity 6.8729274 Factor = F.V. = 389,000.00
