Given the following situations. Illustrate and distinguish whether it is a simple annuity or a general annuity. 1. Monthly payments of P3,000 for 4 years with an interest rate of 3% Flag compounded monthly 2. Semi-annual payments of P150,000 with an interest rate of 8% compounded rest annually for 10 years. 3. Annual payments of P20.500 with an interest rate of 8.5% compounded semi-annually for 3 years 4. Quarterly payment of P5,000 for 10 years with an interest rate of 2% and compounded quarterly. 5. Quarterly payment of P15.000 for 10 years with an interest rate of 8% compounded annually.
Given the following situations. Illustrate and distinguish whether it is a simple annuity or a general annuity. 1. Monthly payments of P3,000 for 4 years with an interest rate of 3% Flag compounded monthly 2. Semi-annual payments of P150,000 with an interest rate of 8% compounded rest annually for 10 years. 3. Annual payments of P20.500 with an interest rate of 8.5% compounded semi-annually for 3 years 4. Quarterly payment of P5,000 for 10 years with an interest rate of 2% and compounded quarterly. 5. Quarterly payment of P15.000 for 10 years with an interest rate of 8% compounded annually.
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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Given the following situations. Illustrate and distinguish whether it is a simple
1. Monthly payments of P3,000 for 4 years with an interest rate of 3% Flag compounded monthly
2. Semi-annual payments of P150,000 with an interest rate of 8% compounded rest annually for 10 years.
3. Annual payments of P20.500 with an interest rate of 8.5% compounded semi-annually for 3 years
4. Quarterly payment of P5,000 for 10 years with an interest rate of 2% and compounded quarterly.
5. Quarterly payment of P15.000 for 10 years with an interest rate of 8% compounded annually.
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