1. High Land Property Development Corp has a P10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 12% compounded monthly? PV = FV [PVFk,n] To get the PVFk,n (present value factor) = 1(1+r)t 2. Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates are implied by the lending arrangements? FV = PV [FVFk,n] or FV = PV x (1 + r)t 3. Z is purchasing an automatic washing machine in an installment basis. She is given 3 monthly installments of P6,000 per month with an interest rate of 10%. What is the price that Mrs Z is paying for the washing machine? PVA = PMT[PVFAk,n] or PMT [1 / r − 1 / r(1+r)t]

1. High Land Property Development Corp has a P10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is 12% compounded monthly? PV = FV [PVFk,n] To get the PVFk,n (present value factor) = 1(1+r)t 2. Your sister borrowed P5,000 from you and promised to repay P5,550 in one year. What interest rates are implied by the lending arrangements? FV = PV [FVFk,n] or FV = PV x (1 + r)t 3. Z is purchasing an automatic washing machine in an installment basis. She is given 3 monthly installments of P6,000 per month with an interest rate of 10%. What is the price that Mrs Z is paying for the washing machine? PVA = PMT[PVFAk,n] or PMT [1 / r − 1 / r(1+r)t]

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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