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1 7. You are an incoming college freshman taking-up a four-year course. Suppose that you want to purchase a car immediately after graduating which will

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7. You are an incoming college freshman taking-up a four-year course. Suppose that you want to purchase a car immediately after graduating which will cotst you P 750 000. How much should you invest at the end of every year in an investment fund that earns 9% annually to have enough to buy the car upon graduation? a. P 164 000 b. P 531 300 c. P 607 445 d. P 132 828 8. If you invest a lump-sum amount of P 25 000 at an interest rate of 2%, compounded monthly, how much would be your investment after 3 years? a. P 34 000 b. P 35 123 c. P 39 338 d. none of the above 9. An equipment with a cost of P 100 000 is expected to generate returrs of P 90 000; P 60 000 and P 50 000 for the first, second and third year, respectively. Using a discount rate of 12%, what is the NPV of the project? a. P 60 121 b. P 79 341 c. P 83 431 d. P 63 778 10. What is the present value of a 6% investment that would pay P 30 000 annually perpetually? a. P 500 000 b. P 450 000 C. P 300 000 d. none of the above

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