3. Add all the future values obtained from the previous steps. P3,000 = P3,000 P3,000 (1 + 0.0075) = P3,022.25 P3,000(1 + 0.0075) = P3,045.169 P3,000(1 + 0.0075)³ = P3,068.008 P3,000(1 + 0.0075)4 = P3,091.018 P3,000(1 + 0.0075) = P3,114.20 F = P183,340,89 Does the given sample problem illustrate a simple or general annuity? What makes it simple? General?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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3. Add all the future values obtained from the previous steps.
= P3,000
P3,000 (1 + 0.0075) = P3,022.25
P3,000
P3,000(1 + 0.0075)² = P3,045.169
P3,000(1 + 0.0075)³ = P3,068.008
P3,000(1 + 0.0075)4 = P3,091.018
P3,000(1 + 0.0075)5 = P3,114.20
F
= P183,340,89
Does the given sample problem illustrate a simple or general annuity? What
makes it simple? General?
Transcribed Image Text:3. Add all the future values obtained from the previous steps. = P3,000 P3,000 (1 + 0.0075) = P3,022.25 P3,000 P3,000(1 + 0.0075)² = P3,045.169 P3,000(1 + 0.0075)³ = P3,068.008 P3,000(1 + 0.0075)4 = P3,091.018 P3,000(1 + 0.0075)5 = P3,114.20 F = P183,340,89 Does the given sample problem illustrate a simple or general annuity? What makes it simple? General?
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