Problem Set Final1

Problem Set 1. An engineer paid P450,000 as 15% downpayment for a property. The remaining balance shall be paid on a quarterly basis for 6 years. If interest is 5% per month, what is the amortization value of the property? P396,346.07 2. A company is considering to salvage their old truck to add funds for a new truck. They found a seller who is willing to trade the old truck with a new one, but the company must pay another P350,000 for the trade in. If the salvage value of the old truck is P12,000 and that the new truck has an estimated life of 8 years, determine the depreciation on the 5th year using 120% declining book value. P28,344.94 3. Mrs. Lopez borrowed P500,000 and promised to pay in monthly terms for 5 years. Interest is 3% per month. How long will the loan be fully paid if she started to double the payments after the 10th payment? 27 months 4. A debt of P20,000 and P40,000 is due on the 5th and 8th month. A settlement of P15,000 and P12,000 were made on the 3rd and 10th month. If the debt earns an interest of 5% per month and settlement is 3% per month, determine the final payment amount on the 13 th month to settle the debts. P47,328.90 5. A series of 10 monthly deposits of P15,000 were made starting on the 15th month, bearing an interest of 5% per month. Determine the present worth of these cash flow. P58,500.01