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BM2.MOD3 - Problem Set 6 Set A 05172010

This document contains 5 math word problems involving compound interest rates and cash values. The problems involve calculating the cash equivalent of rent over 6 years at 18% interest compounded monthly, determining the original amount borrowed on a debt with 12% interest compounded semi-annually over 7 payments, finding the semi-annual payment amount on a 3,000 peso loan at 16% interest compounded semi-annually over 12 payments, setting aside money today to provide 1,200 peso monthly income for 5 years at 15% interest compounded monthly, and calculating the cash value of a house with a 500,000 peso down payment and 25 quarterly 8,000 peso payments over 4.5 years at 12% interest compounded quarterly

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Pollie Jayne Chua
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31 views

BM2.MOD3 - Problem Set 6 Set A 05172010

This document contains 5 math word problems involving compound interest rates and cash values. The problems involve calculating the cash equivalent of rent over 6 years at 18% interest compounded monthly, determining the original amount borrowed on a debt with 12% interest compounded semi-annually over 7 payments, finding the semi-annual payment amount on a 3,000 peso loan at 16% interest compounded semi-annually over 12 payments, setting aside money today to provide 1,200 peso monthly income for 5 years at 15% interest compounded monthly, and calculating the cash value of a house with a 500,000 peso down payment and 25 quarterly 8,000 peso payments over 4.5 years at 12% interest compounded quarterly

Uploaded by

Pollie Jayne Chua
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BMAT2-X

Problem Set 6

Directions: Solve each of the following problems. Write your solutions neatly, and when applicable,
box your final answer.

1. A family rents a house for Php20,000 payable at the beginning of each month. Find the cash
equivalent of 6 years rent if money is worth 18% compounded monthly.

2. To discharge a debt bearing interest at 12% compounded semi-annually, a debtor promises to


pay 7 semi-annual payments of Php19,000 each, the first of which is due today. Find the sum
he borrowed.

3. A man borrowed Php3,000 from a finance company that charges interest at 16% compounded
semi-annually. He promised to pay off the loan in 12 semi-annual payments. The first
payment is to be made at the end of 2 years. Find the semi-annual payment.

4. How much money should be set aside today to provide an income of Php1,200 a month for 5
years if the first payment is to be made at the end of 3 years and 1 month and money is
worth 15% ( m!12 )?

5. A house and lot can be bought for Php500,000 downpayment and 25 quarterly payments of
Php8,000 each. The first installment is due at the end of 4 years and 6 months. If money is
worth 12% compounded quarterly, how much is the cash value of the house and lot?

R. Nocon

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