# Solution: How much is needed to invest monthly for a year?

A manufacturing firm wishes to give each 80 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate compounded monthly, so that each employee will receive a P2,000 bonus?

#### Problem Statement: ME Board April 1998

A manufacturing firm wishes to give each 80 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate compounded monthly, so that each employee will receive a P2,000 bonus?

• A. P12,615.80
• B. P12,516.80
• C. P12,611.80
• D. P12,510.80

The manufacturing firm needed P12,615.80 to invest monthly for a year at 12% nominal interest rate compounded monthly.

Solution:

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