TAEEEEE123
Established
11. A Company sets aside P200,000 at the end of each year for plant expansion. If the fund draws 8% compounded annually, how long will it take before P2,500,000 can be saved?
12. A certain manufacturing plant is being sold and was submitted for bidding . Two bids were submitted by interested buyers. The first bid offered to pay P200,000 each year for 5 years, each payment being made at the beginning of each year. The second bidder offered to pay P120,000 the first year, P180,000 the second year, and P270,000 each year for the next 3 years, all payments being made at the beginning of each year. If money is worth 12% compounded annually, which bid should the Owner of the plant accept?
12. A certain manufacturing plant is being sold and was submitted for bidding . Two bids were submitted by interested buyers. The first bid offered to pay P200,000 each year for 5 years, each payment being made at the beginning of each year. The second bidder offered to pay P120,000 the first year, P180,000 the second year, and P270,000 each year for the next 3 years, all payments being made at the beginning of each year. If money is worth 12% compounded annually, which bid should the Owner of the plant accept?


