Engineering Economy

1)A certain amount of money becomes P111,446.05 five years from now and becomes P165,602.97 ten years from now once invested on an account that earns a compound interest. If this amount was invested three years ago on an account that earns an effective rate.

a)what was the principal amount invested?

b)what was the equivalent rate of interest compounded quarterly?

c)what amount of money would this account will have seven years from now?

2)A certain property was purchasedat an instalment basis wherein the buyer needs to pay 30% of the cash price as down payment. Remaining balance be paid within the period of two years in four payments at the end of every semi-annual. The first payment amounts to P525,000.00, second payment amounts to P600,000.00, third payment amounts to P470,000.00 and the last payment at an amount of P385,500.00. If money is worth 12% compounded quarterly,

a)what was the cash price of the said property?

b)What was the amount of the down payment?

3)A P 25 million debt which includes interest is to be paid in three years by four equal end of a quarter payments of P 2.25 million then by two equal end of a semi-annual payments of P3.5 million and a final payment at the end of the period.If the said debt is discounted at a rate of 10% ;

a)what was the amount of the final payment?

b)what was the actual amount of money granted to the debtor?

c)if the debtor wishes to pay all his debt after one year of payments, what was the amount to be paid?