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Finance

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1. Chiyutu plans to retire from teaching at the end of 2025 and starts a business of his own. He decided to deposit starting 2022 for P50,000, 2023 for P60,000, 2024 for P75,000 and 2025 P100,000. The deposit happens every end of the year and earns an interest of 8% p.a. interest. How much is his total business capital when he retires?

2. Hullar and Estrapa plan to settle down four years after they graduate from college. They decided to same money immediately after graduation. In the first year, each will contribute P10,000, second year, P20,000 each, third year and fourth year P50,000 each per year. Assuming all deposits are made at the beginning of the year at 9% annual interest, how much is their total funds for the wedding.

3. MRs. Happy Lucky won the “Game ka na ba” contest. As her prize, she is given the following choices:

A. To receive an instant cash of P250,000

B. To receive a monthly pension of P12,000 for two and a half years

C. To receive a quarterly pension of P35,000 for 3 years

D. To receive a yearly pension as follows: P100,000 for the first year; P50,000 each year for the next 5 years; P75,000 each year for the last 3 years.

Which choices you recommend to Mrs. Happy Lucky? Discount rate is 12% per annum.

4. Fasteepa wants to save money for Jacks who will graduate 3 years from now. Fasteepa intends to deposit P99,000 for 3 years. The bank interest rate is 12% p.a. compounded quarterly. How much is the amount of money Jacks will have when he graduates?

5. Trisha is being promised by Pasta to receive P50,000 every beginning of the month for two years. The interest rate is 12% per annum. How much is the value of the amount of money promised by Pasta, today?