- 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
Problem 1QTC
icon
Related questions
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
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
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Federal Tax
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education