- 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.
- 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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9aeb3d6b-35ea-4c09-91c8-2a5bd0f7fddc%2Fd4edda03-b535-4838-80c0-ce70fbad95a8%2Fh9t79d1_processed.jpeg&w=3840&q=75)
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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