• solve each question
• STATE THE GIVEN, REQUIRED AND SOLUTION
• DRAW CASH FLAW DIAGRAM FOR EACH QUESTION

1. A man borrowed P320,000 today at an interest rate of 6.5% compounded annually, how much will remain to be paid after a payment of P210,000 is made ten years from now? Show the Cash Flow Diagram. State your reference period in the solution as reflected in the diagram.
2. A man invested P20,000 and after 5 years, it becomes P27,630 when he invested at a certain rate of interest compounded every two months. Compute for the nominal rate and the corresponding effective rate.
3. Calculate the future value of money at the end of 8 years and 8 months if P5,200 is invested at an interest rate of 12% compounded quarterly and using simple interest for anytime less than a year interest period? Show the Cash Flow Diagram. State your reference period in the solution as reflected in the diagram.