8:06 AM 1L il 80 4 + MODULE 2 Pr... . Show all necessary solutions. Provide illustrations on the periodic payments. 1. Find the amount of a Php 100 ordinary annuity payable semi-annually for 3 years if money is worth 5% converted semi-annually. 2. A farmer bought a farming tractor. If it was purchased under the following terms: Php 50,000 down payment and Php 4,500 payment every month for 5 years. If money is worth 6% compounded monthly, find the cash price of the car. 3. Francis wants to accumulate a fund for his daughter's graduation gift. He deposits Php 1,500 every 3 months for 9 years in a savings account that pays 4% compounded quarterly. How much would he save in the account at the end of 9 years? (Assume that no withdrawals were made and the starting balance of the account is Php 0.00) 4. A student invests Php 500 every 6 months at 4% compounded semi-annually. Find his savings in 12 years. 5. Anika purchased a property and pays Php 250,000 cash and the balance is to be repaid in 20 annual payments of Php 10,000 each. If money is worth 4.5%, what is the cash value of the property? 6. Find the amount of an ordinary annuity which pays Php 850 at the end of each 3 months for 5 years if money is worth 8% compounded quarterly. 7. Every 6 months for 5 years, a father deposits Php 3000 in a trust company for his daughter's education. If the money earns at 16% compounded semi-annually, how much will be in the fund after the 7th deposit? After the last deposit?
8:06 AM 1L il 80 4 + MODULE 2 Pr... . Show all necessary solutions. Provide illustrations on the periodic payments. 1. Find the amount of a Php 100 ordinary annuity payable semi-annually for 3 years if money is worth 5% converted semi-annually. 2. A farmer bought a farming tractor. If it was purchased under the following terms: Php 50,000 down payment and Php 4,500 payment every month for 5 years. If money is worth 6% compounded monthly, find the cash price of the car. 3. Francis wants to accumulate a fund for his daughter's graduation gift. He deposits Php 1,500 every 3 months for 9 years in a savings account that pays 4% compounded quarterly. How much would he save in the account at the end of 9 years? (Assume that no withdrawals were made and the starting balance of the account is Php 0.00) 4. A student invests Php 500 every 6 months at 4% compounded semi-annually. Find his savings in 12 years. 5. Anika purchased a property and pays Php 250,000 cash and the balance is to be repaid in 20 annual payments of Php 10,000 each. If money is worth 4.5%, what is the cash value of the property? 6. Find the amount of an ordinary annuity which pays Php 850 at the end of each 3 months for 5 years if money is worth 8% compounded quarterly. 7. Every 6 months for 5 years, a father deposits Php 3000 in a trust company for his daughter's education. If the money earns at 16% compounded semi-annually, how much will be in the fund after the 7th deposit? After the last deposit?
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
I need help. Please show solution.?

Transcribed Image Text:8:06 AM
11 Hil 80
MODULE 2 Pr...
I. Show all necessary solutions. Provide illustrations on the periodic payments.
1. Find the amount of a Php 10o ordinary annuity payable semi-annually for 3 years if
money is worth 5% converted semi-annually.
2. A farmer bought a farming tractor. If it was purchased under the following terms: Php
50,000 down payment and Php 4,500 payment every month for 5 years. If money is
worth 6% compounded monthly, find the cash price of the car.
3. Francis wants to accumulate a fund for his daughter's graduation gift. He deposits Php
1,500 every 3 months for 9 years in a savings account that pays 4% compounded
quarterly. How much would he save in the account at the end of 9 years? (Assume that
no withdrawals were made and the starting balance of the account is Php o.00)
4. A student invests Php 500 every 6 months at 4% compounded semi-annually. Find his
savings in 12 years.
5. Anika purchased a property and pays Php 250,000 cash and the balance is to be repaid
in 20 annual payments of Php 10,000 each. If money is worth 4.5%, what is the cash
value of the property?
6. Find the amount of an ordinary annuity which pays Php 850 at the end of each 3
months for 5 years if money is worth 8% compounded quarterly.
7. Every 6 months for 5 years, a father deposits Php 3000 in a trust company for his
daughter's education. If the money earns at 16% compounded semi-annually, how
much will be in the fund after the 7th deposit? After the last deposit?
8. Mrs. Bautista is a chief financial officer of TCB Catering Services. He proposed to the
company that they offer a retirement plan for a company employee who is now 55
years of age. The plan will provide an annuity due of Php7,000 every year for 15 years
upon retirement at the age of 65. The company is funding the plan with an annuity due
of 10 years. If the rate of interest per year is 5%, what is the amount of installment that
the company should pay to fund this retirement.
9. Calculate the present value of an ordinary annuity of amount Php 100 paid annually for
5 years at the rate of interest of 9% per annum.
10. A man borrows a loan of Php 20,000 to purchase a car at annual rate of interest of 6%.
He will pay back the loan through monthly installments over 5 years, with the first
installment to be made one month after the release of the loan. What is the monthly
installment he needs to pay?
II. Develop word problems with solutions and illustrations related to ordinary annuity
and annuítv due. Only one problem each.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps

Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
Ali deposits $450 at the beginning of every quarter. He wants to build up his account so that he can withdraw $1000 every quarter starting 3 months after the last deposit. If he wants to make the withdrawals for 15 years and interest is 10% compounded quarterly, for how long must Ali make the quarterly deposits?
Solution
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education