. First, you must solve the word problem on Ordinary Annuity. To the closest centavo, round up the total. a. Estimate the future value of an ordinary annuity with a periodic deposit of P7,000.00 at 8 percent compounded semi-annually for six compounding periods.
1. First, you must solve the word problem on Ordinary Annuity. To the closest centavo, round up the total.
a. Estimate the future value of an ordinary annuity with a periodic deposit of P7,000.00 at 8 percent compounded semi-annually for six compounding periods.
2. Solve the following problem on Deferred Annuity (Round all amounts to the closest centavo)
a. Find the present value of 12 quarterly payments of P12,000.00 each. If the interest rate is 9 percent compounded quarterly, the first payment will be due after one year from the loan date.
3. The money of a millionaire was placed in two different banks. He made a Php 30,000,000 investment in Bank A, which offers a 6 percent interest rate that is compounded semi-annually. He also made an investment of Php 40,000,000 in Bank B, which offers interest at a rate of 7 percent per year compounded annually. Which of the two investments will provide a greater yield in three years? Please justify your response.
4. Annaliza would want to invest her funds in a trust fund that pays a simple interest rate of 2.5 percent per year on its principal. Consider the following scenario: she wishes to invest Php 200,000 for three years
a. What do you think the future worth of her investment will be?
b. How much interest will she earn?
5. A lady will invest a Php 70,000,000 in a bank that offers a 4 percent annual compounded interest rate. How much will be the future value of the investment after 12 years?
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