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At what rate compounded annually would this agreement be

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Q1. A contract calls for a payment of P1,200 at the beginning of each month for 12 months. At what rate compounded annually would this agreement be equivalent to a cash payment of P10,000?

A. 10%

B. 13.63%

C. 12%

D. 12.45%

Q2. Mr. Cruz will invest P5000 in a fund at the end of each 6 months to accumulate P100,000 to buy a machine. If the fund is invested at 6.5% compounded semi-annually, how many years will the fund contain at least P100,000?

A. 8

B. 16

C. 15

D. 9

Reference no: EM133189075

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