Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For Nos. 36-40. Oliver is trying to determine if he has sufficient money to invest to a real-estate property worth P10,000,000.00 today (2021). 36.

image text in transcribed

For Nos. 36-40. Oliver is trying to determine if he has sufficient money to invest to a real-estate property worth P10,000,000.00 today (2021). 36. If 25 years ago, Oliver deposited P200,000 in a bank account, what is the value of the money by 2001 if the rate of return is 12% compounded annually? A. P314,703.87 B. P346,174.26 C. P352,468.34 D. P387,715.17 37. By 2001, Oliver withdrew P300,000 to cover his medical expenses after his untimely accident. During this time, the rate of return has changed to 15% compounded semi-annually. What is the value of the money by 2009? A. P46,769.97 B. P146,870.77 C. P166,890.94 D. P279,003.81 38. By 2009, Oliver was promoted in his job allowing him to deposit P10,000 monthly to his bank account. During this time, the rate of return has changed to 20% compounded monthly. Can Oliver buy the real-estate property today? A. No, he still needs P1,100,364.46. C. No, he still needs P2,528,362.50. B. No, he still needs P2,311,999.03. D. No, he still needs P3,610,179.34. 39. In relation to the previous question, if Oliver intends to buy the real-estate property five years from now, how much will he need to deposit annually starting next year assuming that his money and the real-estate property matures at a rate of return of 25% compounded annually during this time? A. P1,342,433.42 B. P940,163.35 C. P859,709.30 D. P409,166.94 40. In relation to the previous question, if Oliver intends to open a second bank account such that he has P2,000,000 by the time he has purchased the real- estate property, how much will he need to deposit monthly if the rate of return of the second bank account is 32% compounded annually? A. P15,604.97 B. P14,706.79 C. P13,851.77 D. P12,647.28

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

12th edition

77862228, 978-1259283567, 1259283569, 978-0077862220

More Books

Students also viewed these Accounting questions

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago

Question

Which innovations have you not yet tackled?

Answered: 1 week ago

Question

Which steps are still necessary to fully integrate the new?

Answered: 1 week ago

Question

Where do you already feel comfortable and secure?

Answered: 1 week ago