University of the Visayas

College of Engineering and Architecture

SCORE:
Name: Subject:
Course: Date:

I. Problem Solving. Show your solution.

1. Find the nominal rate compounded quarterly that is equivalent to 15% compounded semi-annually.

2. What nominal rate compounded monthly is equivalent to 18% effective?

3. The effective rate corresponding to 22% compounded semi-annually.

4. Adora invest 7200 every three months at 505 % interest per quarter. Find the amount of the investment
after 8 ½ years.

5. A personal computer is for sale at P15,600 down and the balance at P1875 per month for 2 years. What is
the cash price of the computer if the interest rate is at ¾ %
6. Nexxon wants to accumulate P150,000 by depositing P5,000 in a fund each quarter. The fund pays 15%
compounded quarterly. How long will it take the Nexxon to do this?

7. What periodic payment is needed to be paid evry quarter for five years to discharge a loan of P145,000 at
12% interest converted quarterly?

8. Find the amount and present value of P 2300 ordinary annuity payable every 6 months for 8 years if
money is worth 18% compounded semi-annually.

9. John Michael wishes to have P 3500 each month for 2 ½ years. His account earns 18% compounded
monthly. How much interest will these annuity payments include?

10. An overhead projector cost P42,000 cash or terms. P8,400 down and P850 at the end of each month for 3
years. If you are the buyer, which purchase plan would you prefer if money is worth 7/8 % per month?