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Question - Manny is a regular employee earning Php 65,000.00 monthly. He is planning to accumulate money by investing, either his Christmas bonus or his performance bonus (given every inception of the year) for the next 5 years in a security that pays 13.5 percent annual rate of return in order to buy his desired car. The car costs Php 1,276,252.39 Manny's Christmas bonus and performance bonus, each respectively, is equivalent to his three-month salary.
a. Will Manny accumulate enough money to buy the car? Which between his options will he use? Explain your advice to Manny (essay)
b. Manny also wants to know how much his approximate annual amortization will be if he will buy the car at 11% interest rate for five years. How much will his annual amortization be?
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