Name three (or more) reasons why we should do your homework for you.
seriously , this stuff looks simple. It's simple math. If you weren't paying attention in class, or you don't get it, you should get a tutor or someone to explain it to you. Simply having others do it for you is pointless and you are not going to learn a damn thing.
1/i. 56197.12
ii. 88427.25
iii. 48427.25
iv. 14827.25
2/i. 576550.79
ii. No
3. I will rather invest it elsewhere as I will earn more by 458850
1. You’ve located an investment that pays 12%. That rate sounds good to you, so you invested P40,000. How much will you have in three years? How much will you have in seven years? At the end of seven years, how much interest will have earned? How much of that interest results from compounding?
2. You would like to buy a new automobile. You have already saved P500,000 or so, but the car costs P685,000. If you can earn 9%, how much do you have to invest today to buy the car in two years? Do you have enough? Assume the price will stay the same.
3. Your company proposes to buy and asset for P3,350,000. This investment is very safe. You would sell off the asset in three years for P4,000,000.You know you could invest the P3,350,000 elsewhere at 10% with very little risk. What do you think of the proposed investment?
4. You want to be a millionaire. You can earn 11.5% per year. Using your current age, at what age will you become a millionaire if you have P25,000 to invest, assuming you make no other deposits (ignore inflation)?
5. A PLDT Industries bond has a 10% coupon rate and a P1,000,000 face value. Interest is paid semiannually, and the bond has 20 years to maturity. If investors require a 12% yield, what is the bond’s value?
