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PLEASE SHOW ANSWERS AND SOLUTIONS. THANK YOU :D Instructions: Answer the questions asked. Support your answers with computation in good form. Problem 1. How much

PLEASE SHOW ANSWERS AND SOLUTIONS. THANK YOU :D

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Instructions: Answer the questions asked. Support your answers with computation in good form. Problem 1. How much must be invested today at 12% interest compounded annually to have P200,000 at the end of ve years (5)? Problem 2. Evaluate the following investment opportunities: frequency of compounding per year interest rate a. annually 12% b. semi annually 11% c. quarterly 10% Required: Which among the three (3) is the best investment option? Why?I Problem 3. Is it wise to invest P200,000 now for a threeyear project that yields a net cah ows of P70,000 if the cost ofmoney is 12% compounded quarterly? Why or why not? Problem 4. A has existing loans: Loan 1, due at the end of 6 years, simple interest of 10% P200,000 loan 2, due at the end of 3 years, compound interest of 9% compounded semi annually P300,000 Because A is experiencing nancial difculty, he estimated that he will e back by the end of eighth years, hence he promise to settle both obligations at that time with a 9% interest compounded quarterly. By how much will A pay the foregoing loans

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