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Answer the following problems correctly and in an organized manner. Show all cash flow diagrams to support Four solution. 1. A perpetual project is conducted
Answer the following problems correctly and in an organized manner. Show all cash flow diagrams to support Four solution. 1. A perpetual project is conducted by Galla Youth Group to service indigent students with their college tuitions fees. The said projects shared P13,500 per year from a fund that yields an interest rate of 12.5% compounded semi-annually. How much would have been deposited to accommodate the project? 2. Eli won the lottery so he wanted to spend a portion of his winnings to buying a house and lot. The deal allows him to pay a downpayment of P125,000 and pay off the rest with 10 equal quarterly payments. Since he spent most of his money to a car, he was not able to pay his quarterly payments. Instead he was planning to pay five equivalent semi-annual payments starting on the end of the first year. If the effective interest rate is 14%, how much would he pay for the equivalent semi-annual payments? 3. Maggie plans on retiring on her 60th birthday. She wants to put the same amount of funds aside each year for the next twenty years, starting next year, so that she will be able to withdar P50,000 per year for twenty years once she retires, with the first withdrawal on her 61st birthday. Maggie is 20 years old today. How much must she set aside each year for her retirement if she can earn 10% on her funds
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