Choose the letter of the correct answer and write it on the space provided _____ 1. A sequence of payments made at equal (fixed) intervals or periods of time. A. Annuity C. Ordinary Annuity B. Annuity due D. Simple Annuity ______2. The amount of each payment. A. Payment interval C. Annuity Payment B. Periodic Payment D. Time payment ______3. It is time between the purchase of an annuity and the start of the payments for the deferred annuity. A. Period of deferral C. Payment interval B. Annuity payment D. Period of payment ______4. A type of annuity in which the payments are made at the end of each payment interval. A. Annuity due C. General Annuity D. Simple Annuity D. Ordinary Annuity ______5. Compounding quarterly means the interest period is A. every year C. every 6 months B. every 4 months D. every 3 months ______6. In a monthly payment of P2,000 for 5 years that will start 7 months from now, what will be the period of deferral? A. 7 B. 5 C. 4 D. 6 ______7. A loan is given an annual payment of P8,000 for 12 years that will start 5 years from now. What is the period of deferral? A. 4 B. 7 C. 12 D. 60 _____8. Given a semi-annual payment of P6,000 for 3 years that will start 5 years from now, how many periods is deferred? A. 2 B. 4 C. 9 D. 10 _____9. Payments of P5,000 every 4 months for 10 years that will start five years from now. A. 3 B. 6 C. 9 D. 14 For items 10-15. A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of 4 months. How much is the fair market value of the car if the interest rate used is 12% converted monthly and down payment is 65,000? _____10. How many conversion period/s given in a year (m)? A. 1 B. 2 C. 4 D. 12 _____11. How many payments are needed to do in the given time (n)? A. 4 B. 16 C. 48 D. 52 _____12. What value of j must be used? A. 0.012 B. 0.12 C. 0.03 D. 0.01 _____13. How many artificial payments is given? A. 3 B. 4 C. 7 D.8 _____14. How much is the present value of the car? A. 620,367.89 B. 626,571.57 C. 666,505.52 D. 659,906.45 _____15. How much is the fair market value? A. 724,906.45 B. 731,505.52 C. 691,571.57 D. 685,367.89
Choose the letter of the correct answer and write it on the space provided
_____ 1. A sequence of payments made at equal (fixed) intervals or periods of time.
A.
B. Annuity due D. Simple Annuity
______2. The amount of each payment.
A. Payment interval C. Annuity Payment
B. Periodic Payment D. Time payment
______3. It is time between the purchase of an annuity and the start of the payments for the deferred annuity.
A. Period of deferral C. Payment interval
B. Annuity payment D. Period of payment
______4. A type of annuity in which the payments are made at the end of each payment interval.
A. Annuity due C. General Annuity
D. Simple Annuity D. Ordinary Annuity
______5. Compounding quarterly means the interest period is
A. every year C. every 6 months
B. every 4 months D. every 3 months
______6. In a monthly payment of P2,000 for 5 years that will start 7 months from now, what will be the period of deferral?
A. 7 B. 5 C. 4 D. 6
______7. A loan is given an annual payment of P8,000 for 12 years that will start 5 years from now. What is the period of deferral?
A. 4 B. 7 C. 12 D. 60
_____8. Given a semi-annual payment of P6,000 for 3 years that will start 5 years from now, how many periods is deferred?
A. 2 B. 4 C. 9 D. 10
_____9. Payments of P5,000 every 4 months for 10 years that will start five years from now.
A. 3 B. 6 C. 9 D. 14
For items 10-15. A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of 4 months. How much is the fair market value of the car if the interest rate used is 12% converted monthly and down payment is 65,000?
_____10. How many conversion period/s given in a year (m)?
A. 1 B. 2 C. 4 D. 12
_____11. How many payments are needed to do in the given time (n)?
A. 4 B. 16 C. 48 D. 52
_____12. What value of j must be used?
A. 0.012 B. 0.12 C. 0.03 D. 0.01
_____13. How many artificial payments is given?
A. 3 B. 4 C. 7 D.8
_____14. How much is the present value of the car?
A. 620,367.89 B. 626,571.57 C. 666,505.52 D. 659,906.45 _____15. How much is the fair market value?
A. 724,906.45 B. 731,505.52 C. 691,571.57 D. 685,367.89
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