28. A personal computer was bought on installments â€“ Php5,000 downpayment and the balance of Php22,000 in 2 years. What is the cash price if the interest rate is 20% compounded quarterly?
30. On April 15, 2011, Justin borrowed Php1.4M. He agreed to pay the principal and the interest at 8% compounded semi-annually on July 15, 2016. How much will he pay then?
Equation of values â€“ a mathematical statement which says that the dated values of two sets of amounts are equal when brought to a particular point in time (the comparison date).
In the context of borrowing, the equation of values says that
obligations = payments
These sums are obtained by either accumulating or discounting the debts incurred or the payments made toward the comparison date.
47. For an amount borrowed from a credit cooperative, Janice needs to pay Php100,000 in 5 years. After 2 Â½ years , she made a Php50,000 payment. If money is worth 8% compounded semi-annually, how much would she have to pay on the 5th year to fully settle the loan?
51. As payments for debts of Php300,000 due at the end of 4 years and Php485,000 at the end of 8 years, Jane agrees to pay Php50,000 at once and Php250,000 at the end of 5 years. She will make a third and final payment at the end of 10 years. How much would it be if money is worth 14% compounded semi-annually.
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