1. Answer the following: A) A young engineer borrowed P25,663 at 8% interest and paid P3,499...

1. Answer the following:

A) A young engineer borrowed P25,663 at 8% interest and paid P3,499 per annum for the last 4 years. What does he have to pay (in pesos) at the end of the following year in order to pay off his loan?

B)Money borrowed today is to be paid in 15 equal payments at the end of 15 quarters. If the interest rate is 8% compounded quarterly, how much was initially borrowed (in peso) if the quarterly payment is P2,575?

C)A house and lot can be acquired by a down payment of P376,006 and a yearly payment of P117,600 at the end of each year for a period of 15 years. If money is worth 6% compounded annually, what is the cash price (in peso) of the property?

D)What is the accumulated amount (in peso) of 14-year annuity paying P8,496 at the end of each year, with interest at 5% compounded annually?

Expert Solution

ekkarill92 answered 2 years ago

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