- Determine the present value of an ordinary annuity of P2,700 each quarter payable for years and 9 months, if money is worth 11% compounded quarterly.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Please help me answer numbers 2 & 4. Thank you!
Score:
Date:
Name:
B. Solve for the following:
1.
A water dispenser costs 17,100. It is purchased with a down payment of P1,100 and 6
bimonthly payments. If money is worth 9% compounded bimonthly, find the bimonthly
payment.
2. Determine the present value of an ordinary annuity of P2,700 each quarter payable for 4
years and 9 months, if money is worth 11% compounded quarterly.
3. Emalou will settle a debt by paying P850 quarterly for 4 years. What is the outstanding
debt if money is worth 12.3% compounded quarterly?
4. What must be deposited every 3 months in a fund paying 11.4% compounded quarterly
in order to have P125,000 in 7 years?
160 Page
Chapter 4: Ordinary Simple Annuity
Transcribed Image Text:Score: Date: Name: B. Solve for the following: 1. A water dispenser costs 17,100. It is purchased with a down payment of P1,100 and 6 bimonthly payments. If money is worth 9% compounded bimonthly, find the bimonthly payment. 2. Determine the present value of an ordinary annuity of P2,700 each quarter payable for 4 years and 9 months, if money is worth 11% compounded quarterly. 3. Emalou will settle a debt by paying P850 quarterly for 4 years. What is the outstanding debt if money is worth 12.3% compounded quarterly? 4. What must be deposited every 3 months in a fund paying 11.4% compounded quarterly in order to have P125,000 in 7 years? 160 Page Chapter 4: Ordinary Simple Annuity
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