Answer 1-10 idadD. Evaluation1. Payments are made at the beginning of each period and the compoundingperiod is EQUAL to the payment period.a. Simple AnnuityDirection: Encircle the letter of the correct answer.c. Annuityb. General Annuity2. Payments do not coincide with the interest periods.a. Simple Annuityc. Annuityb. General Annuity3. A sum of money or an investment that is paid at regular intervals.c. Annuitya. Simple Annuityb. General Annuity4. Reyton decided to save P500 at the end of each month with a 2%compounded monthly interest for 15 months provided by the bank.a. Simple AnnuityC. Annuityb. General Annuity5. Reychael borrowed P180,000. She agrees to pay the principal plus interest bypaying an equal amount of money each month for 5 years with a quarterlyinterest of 7.5%.a. Simple Annuityb. General Annuityc. Annuity6. To pay for his debt at 12% compounded semi-annually, Ruben committed for 8quarterly payments of P24,491.28 each. How much did he borrow?a. P172,235.21b. P172,238CP172,238.61d. P172,2357. To pay for his debt at 12% compounded quarterly, Ruben committed 8quarterly payments of P28,491.28 each. How much did he borrow?a) P200,000b. P210,000c. P180,000d. P205,0008. How much should be invested in a fund each year paying 2% compoundedannually to accumulate P100,000 in 5 years?a. P19, 215.84b. P19,000c. P19,215d. P19,200.849. Reyton decided to save P500 at the end of each month with a.2% compoundedmonthly interest for 15 months provided by the bank.a. Simple AnnuityGeneral Annuityc. Annuityd. None of the above10. Reychael borrowed P180,000. She agrees to pay the principal plus interest bypaying an equal amount of money each month for 5 years with a quarterly interestof 7.5%.a. Simple Annuityb. General Annuityc. Annuityd. None of the above12

“Since you have posted multiple questions, we will solve first question for you. If you want any…

raluation ction: Encircle the letter of the correct answer. Payments are made at the beginning of each period and the compounding perigd is EQUAL to the payment period. a. Simple Annuity C. Annuity b. General Annuity ariods Onnuity

raluation ction: Encircle the letter of the correct answer. Payments are made at the beginning of each period and the compounding perigd is EQUAL to the payment period. a. Simple Annuity C. Annuity b. General Annuity ariods Onnuity

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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Question

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Answer 1-10

idad
D. Evaluation
1. Payments are made at the beginning of each period and the compounding
period is EQUAL to the payment period.
a. Simple Annuity
Direction: Encircle the letter of the correct answer.
c. Annuity
b. General Annuity
2. Payments do not coincide with the interest periods.
a. Simple Annuity
c. Annuity
b. General Annuity
3. A sum of money or an investment that is paid at regular intervals.
c. Annuity
a. Simple Annuity
b. General Annuity
4. Reyton decided to save P500 at the end of each month with a 2%
compounded monthly interest for 15 months provided by the bank.
a. Simple Annuity
C. Annuity
b. General Annuity
5. Reychael borrowed P180,000. She agrees to pay the principal plus interest by
paying an equal amount of money each month for 5 years with a quarterly
interest of 7.5%.
a. Simple Annuity
b. General Annuity
c. Annuity
6. To pay for his debt at 12% compounded semi-annually, Ruben committed for 8
quarterly payments of P24,491.28 each. How much did he borrow?
a. P172,235.21
b. P172,238
CP172,238.61
d. P172,235
7. To pay for his debt at 12% compounded quarterly, Ruben committed 8
quarterly payments of P28,491.28 each. How much did he borrow?
a) P200,000
b. P210,000
c. P180,000
d. P205,000
8. How much should be invested in a fund each year paying 2% compounded
annually to accumulate P100,000 in 5 years?
a. P19, 215.84
b. P19,000
c. P19,215
d. P19,200.84
9. Reyton decided to save P500 at the end of each month with a.2% compounded
monthly interest for 15 months provided by the bank.
a. Simple Annuity
General Annuity
c. Annuity
d. None of the above
10. Reychael borrowed P180,000. She agrees to pay the principal plus interest by
paying an equal amount of money each month for 5 years with a quarterly interest
of 7.5%.
a. Simple Annuity
b. General Annuity
c. Annuity
d. None of the above
12

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