Seatwork/Boardwork/Assignment in ENGG 317

Problem Solving:

1. An individual makes 5 annual deposits of P2,000 in a savings account that pays interest at a rate
of 4% per year. One year after making the last deposit the interest rate changes to 6% per year.
Five years after the last deposit the accumulated money is withdrawn from the account. How
much is withdrawn?
2. A man paid 10% down payment of P200,000.00 and lot and agreed a house and lot and agreed
to the 90% balance on monthly installment for 60 months at an interest rate of 15%
compounded monthly. Compute the amount of the monthly payments.
3. A man loans P187,400.00 from a bank with interest at 5% compounded annually. He agrees to
pay his obligations by paying 8 equal annual payments. The first being due at the end of 10
years. Find annual payments.
4. A man owes P12,000 today and agrees to discharge the debt by equal payments at the
beginning of each month for 8 years, where this payments include all interest at 8% payable
quarterly. Find the monthly payments.
5. A young woman, 22 years old, has just graduate from college. She accepts a good job and
desires to establish her own retirement fund. At the end of each year thereafter she plans to
deposit P2,000 in a fund at 15% annual interest. How old will she be when the fund has an
accumulated amount of P1,000,000.00?
6. Engr. Francisco purchased a small lot in a subdivision paying P200,000.00 downpayment and
promising to pay P15,000 every 3 months for the next 10 years. The seller figured interest at
12% compounded quarterly.
a. What was the cash price of the lot?
b. If Engr. Francisco missed the first 12 payments, what must he pay at the time the 13th is due
to bring himself up to date?
c. After making 8 payments. Engr. Francisco wished to discharge his remaining indebtedness
by a single payment at the time when the 9th regular payment was due, what must he pay in
addition to regular payment then due?
d. If Engr. Francisco missed the first 10 payments, what must he pay when the 11 th payment is
due to discharge his entire indebtedness?
7. Determine the present worth and the accumulated amount of an annuity consisting of 6
payments of P120,000.00 each, the payment are made at the beginning of each year. Money is
worth 15% compounded annually.
8. A piece of machinery can be bought for P10,000 cash or for P2,000 downpayment and payments
of P750 per year for 15 years. What is the annual interest rate for the time payments?
9. A fund is donated by a benefactor to PICE to provide annual scholarship to deserving CE
students. The fund will grant P5,000 for each of the first five years, P8,000 for the next 5 years
and P10,000 each year thereafter. If the fund earns 8% interest, what is the amount of the
donation?
10. You need P4,000 per year for four years to go to college, your father invested P5,000 in 7%
account for your education when you were born. If you withdrawn P4,000 at the end of your
17th , 18th, 19th, and 20th birthday. How much will be left in the account at the end of the 21 st
birthday?