Financial Math Answers

B.Caridad is a Product Manager receiving an annual salary of P118,000.00 She receives commission on her own sales of 1% and an override of of 1% on her men's sales. She sold P128,560.00 for the past month. Her men all receive a basic pay of P7,860.00 a month and a commission of 2% on their respective sales plus bonus of 14% on all sales exceeding P200,000.00. Her men's sales are as follows: F. Sta. Cruz, P125 230.00; A. Tante, P96 975.00; M. Umali, P239,100.00 and E. Inocencio, P108,675.00. The company deducts SSS contributions of 3.63% and PhilHealth contributions of P100.00 and 1% for Withholding tax. Compute for.

a.Gross earnings of B. Caridad

b. Net pay of B. Caridad

C. Gross earnings of each of the salesmen

d. Use Excel to incorporate (a) and (b).

3.Helen receives a monthly salary of P18 800.00. Compute for her:

a.annual salary

b. weekly salary

c.daily rate for 5-day week

d. semi-monthly salary

e.bi-weekly salary

f. hourly rate for 40-hour week

Consider a closed economy that is characterized by the following equations:

Y = C + I + G

C = 900 + 0.5(Y − T)

I = 750 − 30r

T = 800

G = 1200

Md = Ms

Ms = 1500

Mt = 0.7Y

Msp = −80r

Where Y is the GDP, C is private consumption expenditure, I is the Investment expenditure, G

is government expenditure, T is tax revenues, Ms

is money supply, Mt

is transaction demand

for money, Msp is the speculative demand for money and r is the interest rate (in % points).

a) Derive (Md⁄P) the demand for real money balances equation (where P is the aggregate

price level.)

b) Derive the IS and LM equations of the economy (Express Y as a function of r and assume

P is fixed at 1.0.)

c) Calculate the short–run equilibrium values of Y and r in the economy.

Consider a closed economy that is characterized by the following equations:

Y = C + I + G (1)

C = 900 + 0.5(Y − T) (2)

I = 750 − 30r (3)

T = 800 (4)

G = 1200 (5)

Md = Ms

 (6)

Ms = 1500 (7)

Mt = 0.7Y (8)

Msp = −80r (9)

Where Y is the GDP, C is private consumption expenditure, I is the Investment expenditure, G 

is government expenditure, T is tax revenues, Ms

is money supply, Mt

is transaction demand 

for money, Msp is the speculative demand for money and r is the interest rate (in % points).

a) Derive (Md⁄P) the demand for real money balances equation (where P is the aggregate 

price level.) 

b) Derive the IS and LM equations of the economy (Express Y as a function of r and assume 

P is fixed at 1.0.) 

c) Calculate the short–run equilibrium values of Y and r in the economy. 

Consider a closed economy that is characterized by the following equations:

Y = C + I + G (1)

C = 900 + 0.5(Y − T) (2)

I = 750 − 30r (3)

T = 800 (4)

G = 1200 (5)

Md = Ms

(6)

Ms = 1500 (7)

Mt = 0.7Y (8)

Msp = −80r (9)

Where Y is the GDP, C is private consumption expenditure, I is the Investment expenditure, G

is government expenditure, T is tax revenues, Ms

is money supply, Mt

is transaction demand

for money, Msp is the speculative demand for money and r is the interest rate (in % points).

a) Derive (Md⁄P) the demand for real money balances equation (where P is the aggregate

price level.)

b) Derive the IS and LM equations of the economy (Express Y as a function of r and assume

P is fixed at 1.0.)

c) Calculate the short–run equilibrium values of Y and r in the economy.

Consider a closed economy that is characterized by the following equations:

Y = C + I + G (1)

C = 900 + 0.5(Y − T) (2)

I = 750 − 30r (3)

T = 800 (4)

G = 1200 (5)

Md = Ms

(6)

Ms = 1500 (7)

Mt = 0.7Y (8)

Msp = −80r (9)

Where Y is the GDP, C is private consumption expenditure, I is the Investment expenditure, G

is government expenditure, T is tax revenues, Ms

is money supply, Mt

is transaction demand

for money, Msp is the speculative demand for money and r is the interest rate (in % points).

a) Derive (Md⁄P) the demand for real money balances equation (where P is the aggregate

price level.)

b) Derive the IS and LM equations of the economy (Express Y as a function of r and assume

P is fixed at 1.0.)

c) Calculate the short–run equilibrium values of Y and r in the economy.