Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he will place Php20,000 at the end of each month in an investment that pays 12% compounded monthly. When will the fund accumulate to Php1,000,000?
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- 5. A man decided to sell his farm and to deposit the fund in a bank. After computing the interest, they learned that they may be withdraw Php180,000 semi annually for 11 years starting at the end of 7 years when it is time for him to retire. How much is the fund deposited if the interest rate is 5% converted semi annually?Tom decides to save Php 25,000 each month for the next five years. If he starts to invest all of these savings in an account which will pay him 8% compounded scmiannually, determine the total savings/amount after 5 years. A. 1,830,805.60 C. 1,903,508.67 B. 2,830,805.60 D. 2,309,085.782. A man plans a 20year plan fund for his daughter, he wants her to receive 700,000 per year for 10years (11th-20th year), 10 years from now. What amount should he invest today if it will earn 5% interest compounded annually during the first 5 years and 6% compounded quarterly during the next 5 years? and 7% compounded annually for the last 10 years? ans. 2,860,153 Php
- 2. A man plans a 20year plan fund for his daughter, he wants her to receive 700,000 peryear for 10years (11th-20th year), 10 years from now. What amount should he invest today if it will earn 5% interest compounded annually during the first 5 years and 6% compounded quarterly during the next 5 years? and 7% compounded annually for the last 10 years? ans. 2,860,153 Php9. Every six months for 5 years, a father places Php8,200 in a trust fund for his only child's education. If the money earns at 12% compounded semi-annually, how much will be in his account after the last placement? Dsonia which to establish a trust fund from which her son can withdrew $6000 every six months for 15 years , when he reach 16 years old.At the end of which time he will receive the remaining money in the trust,which you would like to be $25000. The trust will be invested at 6% per annum compounded semi-annual .How large should the trust be ?
- .SHOW SOLUTION A man wishes his son to receive ₱200,000 ten years from now. What amount should he invest if it will earn interest of 10% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years? Ans: ₱68,758.67Leonard wants to have $400,000 in his RRSP when he retires in 31 years. How much must he deposit at the end of each month into the RRSP in order to reach his goal? Assume that he can earn j12=4.8% on his money. Your Answer: AnswerA man wishes his son to receive ₱200,000 ten years from now. What amount should he invest if it will earn interest of 10% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years? Ans: ₱68,758.67
- Solve the following problems on a sheet of paper. What Have I Learned So Far? Solve the following problems on a sheet of paper. Your parents wanted to establish a travel fund that will provide them an annual traver 1. allowance of P250 000 for 10 years when they retire, How much should they invest in a trust fund that earns 4% interest compounded monthly if they are to retire in 5 years? 2. How much should a mother invest now for a long-term investment that offers 10% interest compounded monthly if she desires to provide her son a 5-year college fund of P120 000 annually, 6 years from now?Perpetuity 4. Don Jose deposited Php5,000,000 on a bank that earns 10% compounded annually. Five years later he died. His will states that his beneficiary is an orphanage which will be receiving the money in perpetuity a year after he died. How much is the yearly fund the orphanage will be receiving? .John save Php 120 every quarter for 3 years earning 7% compounded monthly in a fund. How much will he have in the end? Round off your answer in two decimal places 0.017602281828704 Phr