A certain amount was deposited S yean and 9 months ago at an interest of 8% comp

Question

A certain amount was deposited S yean and 9 months ago at an interest of 8% compounded quarterly If the turn now is P315, 379.85, How much was the amount deposited? P200.000 P240.000 P180.000 P260,000 What is normally used to compare alternatives that accomplish the same purpose but have unequal lives? Capitalized cost method Present worth method Annual cost method MARR If you borrowed money from your friend with simple interest of 12%, find the present worth of P50,000 which is due at the end of 7months. P46.200. P46.729 P44.893 P45.789 A man borrowed P2000 from a bank and promise to pay the amount for 1 year. He received only the amount of P1, 920 after the bank collected an advance interest of P80 What was the rate of discount and the rate of interest that the bank collected in advance? 4%: 4.17% 4%: 4.71% 3%: 3.37% 3%: 3.71%

Explanation / Answer

(1) (A)

Let initial amount be P.

Number of quarters = (5 x 4) + (9 / 3) = 20 + 3 = 23

Quarterly interest rate = 8% / 4 = 2%

So,

P x (1.02)23 = 315,379.85

P x 1.5769 = 315,379.85

P = 315,379.85 / 1.5769 = 200,000

(2) (C)

(3) (B)

Monthly simple interest = 12% / 12 = 1%

Present worth + [Present worth x 1% x 7] = P50,000

Present worth x [(1 + (1% x 7)] = P50,000

Present worth x [1 + 0.07] = P50,000

Present worth x 1.07 = P50,000

Present worth = P50,000 / 1.07 = 46,729

Note that we are computing simple interest & not compound interest.

NOTE: First 3 questions are answered.

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