ANNUITY(Draw the cash flow diagram for each problem)1. If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%,what is the total peso amount upon the deposit of the sixth payment?2. If P500.00 is deposited in an account at the beginning of each year for 6 years at an annualinterest rate of 7%, how much can be withdrawn after 6 years?3. A fund is to provide an annual scholarship at P4,000.00 for the first 5 years; P6,000.00 forthe next 5 years and P9,000.00 thereafter. The fund will be established 1 year before thefirst scholarship is awarded. If the fund earns 12% interest, what sum must be deposited?4. A man paid 10% as down payment of P200,000.00 for a house and lot and agreed to paythe balance on monthly instalments for 5 years at an interest rate of 15% compoundedmonthly. What was the monthly instalment in pesos?5. An investor deposits P10,000.00 at the end of each year in an account which gives anominal annual interest of 5% compounded continuously. How much sum will heaccumulate in 10 years?

The questions here pertain to annuity. An annuity is a stream of constant cash flow that occurs at…

1. If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%, what is the total peso amount upon the deposit of the sixth payment? 2. If P500.00 is deposited in an account at the beginning of each year for 6 years at an annual interest rate of 7%, how much can be withdrawn after 6 years?

1. If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%, what is the total peso amount upon the deposit of the sixth payment? 2. If P500.00 is deposited in an account at the beginning of each year for 6 years at an annual interest rate of 7%, how much can be withdrawn after 6 years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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