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How to answer the brief exercises for Time Value of Money and the problem solving on Simple Compound Interest Computation?.... BRIEF EXERCISES FOR TIME VALUE

How to answer the brief exercises for Time Value of Money and the problem solving on Simple Compound Interest Computation?....

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BRIEF EXERCISES FOR TIME VALUE OF MONEY 1. Raymond Tacos invested P15,000 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semi-annually? 2. Kenneth Amibao needs P25,000 in 4 years. What amount must he invest today if his investment earns 12% annual interest compounded quarterly? 3. Maribeth Luna will invest P10,000 today in a fund that earns 5% annual interest. How many years will it take for fund to grow to P17,100? PROBLEM SOLVING ON SIMPLE COMPOUND INTEREST COMPUTATION 4. Sa Ing invest P30,00 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of 8 years Sa withdrew the accumulated amount of money. Instruction: A) compute the amount Sa would withdraw assuming the investment earns simple interest. B) compute the amount Sa would withdraw assuming the investment earns interest compounded annually. C) Compute the amount Sa would withdraw assuming the investment earns interest compounded semi-annually

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