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SA#2
SA#2
SA#2
quarter for 3 years and 3 months. If money is worth 15% compounded quarterly, find the cash
price of the computer.
R = 2,400
j = 15%
m = 4
t = 3.25
n = 3.25x4 = 13
CP = 20,000 + A = 24,341.65344
CP = 20,000 + 24,341.65344
CP = 44,341.65
Given:
A.
P = 350,000
t=4
j = 16%
m=2
i = 16/2 = 0.08
n = 4x2 = 8
B
F = 600,000
t = 0.5
j = 14%
m=4
i = 14/4 = 0.035
n = 0.5x4 = 2
C =
x = 400,000
t=2
j = 12%
m=2
i = 12/2 = 0.08
n = 2x2 = 4
D =
t = 5.5
j = 12%
m=2
i = 16/2 = 0.08
n = 5.5 x 2 = 11
Solution:
2.331638997 = 199540.8258
x= 199540.8258/2.331638997
x = 51,269.01118
Mrs. Sara Samonte owes PBN Bank P3,050,000 due in 3 years and 6 months and
P2,340,000 due in 9 years, if she plans to settle these obligations by a single payment
on the 6th year, how much should she pay if money is worth 14%, m=4?
Given:
A.
P = 2,340,000
t=9
j = 14%
m=4
i = 14/4 = 0.035
n = 9x4 = 36
B =
x = 3,050,000
t = 3.5
j = 14%
m=4
i = 14/4 = 0.035
n = 3.5x4 = 14
C =
t = 5.5
j = 12%
m=2
i = 12/2 = 0.06
n = 5.5 x 2 = 11
Solution:
2..283328487 = 6485591.212
6485591.212/2.283328487
2,840,410.939
Given:
A.
P = 5,000,000
t=4
j = 12%
m=2
i = 12/2 = 0.06
n = 4x2 = 8
B
F = 600,000
t = 0.5
j = 14%
m=4
i = 14/4 = 0.035
n = 0.5x4 = 2
C =
x = 500,000
t=2
j = 12%
m=2
i = 12/2 = 0.06
n = 2x2 = 4
D =
t = 5.5
j = 12%
m=2
i = 12/2 = 0.06
n = 5.5 x 2 = 11
Solution:
1.898298558x = 7,898,108.315
7,898,108.315/1.898298558x
x= 4,160,624.935
A dining set was purchased under these terms: P5,000 down and P1,500 each quarter
for 3 years and 3 months. If money is worth 11.5% compounded quarterly, find the cash
price of the computer.
R = 1,500
j = 11.5% OR 0.115
t = 3.25
m=4
n = 3.25x4 = 13
CP = 5,000 + A = 1,500 (1-(1+0.02875)^-13
0.02875
CP = 5,000 + A = 1,500 (1-0.691786325)
0.02875
CP = 5,000 + A = 1,500 (0.308213675)
0.02875
CP = 5,000 + A = 1,500 (10.72047565)
CP = 5,000 + A = 16,080.71348
CP = 5000 + 16,080.71348
CP = 21,080.71348
Julie owes BN Bank P350,000 due in 3 years and P850,000 due in 8 years, if she plans
to settle these obligations by a single payment on the 5th year, how much should she
pay if money is worth 20%, m=4?
a. Accumulate (F) 350,000 by 3 years, , t= 3, j=20%, m=4, i = 20%/4 = 0.05,
n = 3x4= 12
b. Discount (P) 850,000 by 8 years, t=8, j= 20%, m =4, i = 20%/4 = 0.05, n
= 3x4=12
Payment
2.653297705x = 1,101,860.719
1,101,860.719/2.653297705x
X= 415,279.7166