Problem Set 1 Financial Management Simple and Compound Interest PDF

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FINANCIAL MANAGEMENT: INTERESTPROBLEM SET NO. 1 Answer the problem on your OWN.  Any form of INTELLECTUAL DISHONESTY can INVALIDATE your problem set score, like copying the answer of your classmates or comparing your own answer to the answer of your classmates is STRICTLY PROHIBITED.  The score w...

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FIN FINAN AN ANCI CI CIA AL M MA ANAGEM GEMEN EN ENT: T: INTEREST PR PROB OB OBLE LE LEM M SET N NO. O. 1  

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Answer the problem on your OWN OWN. Any form of INTE INTELLECT LLECT LLECTUA UA UALL DIS DISHONE HONE HONESTY STY can IN INVA VA VALID LID LIDA ATE your problem set score, like copying the answer of your classmates or comparing your own answer to the answer of your classmates is STRICT RICTLY LY P PR ROHIBI OHIBITED. TED. The score will be recorded as part of your PE PERF RF RFOR OR ORM MANC ANCE ET TAS AS ASK K.

PRO PROB BLEM SO SOLVIN LVIN LVING G Solve the following problem. (5 POINTS EACH) (Show your COMPLETE STEP SOLUTION) HA HALF LF A MI MILLLI LION ON PES PESO OS 1. How long will it take P200,000 to amount to half a million pesos if the simple interest rate is 8.25% per

annum? JA JAMES MES MES’’ IN INV VES ESTM TM TME ENT

2. James invested Php 35,000 and had Php 39, 250 returned to him 2 years and 9 months later. At what simple interest rate did his money earn? SIM SIMPL PL PLE E IINTE NTE NTEREST REST

3. When will Php 42, 000 increase to Php 50,000 if the simple interest rate is 11.4%? ZAC ZACHARY HARY HARY’S ’S FFU UTURE

4. On the birth of his first son Zachary, Brian deposited P100,000 in a trust fund that pays 3.75% interest compounded monthly. How much money is in the trust fund when Zachary reaches his 18th birthday? ELL ELLA A’S S SAV AV AVIN IN INGS GS

5. How much must Ella deposit in a bank that pays 11% interest compounded quarterly so that she will have Php 400,000 after 4 years? MARIC ARICAR AR AR’S ’S ONLIN LINE EC CLASS LASS

6. Maricar wants to buy new phone for her online class she deposits Php 6,000 into an account paying 6.5% annual interest compounded quarterly, how long until there is Php 12,600 in the account?

SCORING: 1 PT – GIVEN 1 PT – CORRECT FORMULA USED 3 PTS – DETAILED SOLUTION 2 PTS – CORRECT AND COMPLETE FINAL ANSWER *Use the proper currency. *For the exactness and uniformity of the final answer, round-off your final answer to the nearest hundredth. *Boxed your final answer....