1. What amount must be deposited on January 1, 2020 to be able to withdraw P5,000,000 by December 31, 2024 if the deposit earns 14% interest compounded annually?

a. 3,000,000

b. 2,597,000

c. 2,348,000

d. 2,602,000

2.What will each of the five equal annual payments of principal and interest amount to if P3,000,000 is borrowed at a rate of 10% per year and the last payment being made at the end of the fifth year?

a. 600,000

b. 900,000

c. 791,392

d. 802,347

3.On January 1, 2020, Lank Co. sold to Day Corp. P400,000 of its 10% bonds for P354,118 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Lank report as interest expense for the six months ended June 30, 2020?

a. 17,706

b. 20,000

c. 21,247

d. 24,000