Determine whether it is simple ordinary annuity, general ordinary annuity, or deferred annuity. 1. A television set can be purchased for Php 37,395 with no down payment. An installment of Php 2,000 per month for 24 months are required to pay the television set with interest compounded monthly. 2. Mr. George Batumbakal buys a new van and pays Php 200,000 cash with a condition to pay Php 18,000 at the end of each month for 5 years to pay all the principal and interest at the rate of 12% compounded monthly. 3. To settle a debt of Php 50,000, Mrs. Rose Mandap will pay quarterly for 6 years at 12% compounded quarterly. The first payment is due at the end of 1 year.
Determine whether it is simple ordinary annuity, general ordinary annuity, or deferred annuity. 1. A television set can be purchased for Php 37,395 with no down payment. An installment of Php 2,000 per month for 24 months are required to pay the television set with interest compounded monthly. 2. Mr. George Batumbakal buys a new van and pays Php 200,000 cash with a condition to pay Php 18,000 at the end of each month for 5 years to pay all the principal and interest at the rate of 12% compounded monthly. 3. To settle a debt of Php 50,000, Mrs. Rose Mandap will pay quarterly for 6 years at 12% compounded quarterly. The first payment is due at the end of 1 year.
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
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Determine whether it is simple ordinary
annuity, or deferred annuity.
1. A television set can be purchased for Php 37,395 with no down payment. An installment of Php 2,000 per month for 24 months are required to pay the television set with interest compounded monthly.
2. Mr. George Batumbakal buys a new van and pays Php 200,000 cash with a condition to pay Php 18,000 at the end of each month for 5 years to pay all the principal and interest at the rate of 12% compounded monthly.
3. To settle a debt of Php 50,000, Mrs. Rose Mandap will pay quarterly for 6 years at 12% compounded quarterly. The first payment is due at the end of 1 year.
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