Topic: Annuities 1. A man paid 10% down payment of ₱200,000.00 for a house and lot and agreed to pay the 90% balance on monthly instalments for 60 months at an interest rate of 15% compounded monthly. Compute the amount of monthly payment. (Ans: ₱42,821.87)
Topic: Annuities
1. A man paid 10% down payment of ₱200,000.00 for a house and lot and agreed to pay the 90% balance on monthly instalments for 60 months at an interest rate of 15% compounded monthly. Compute the amount of monthly payment. (Ans: ₱42,821.87)
2. How much must be deposited at 6% each year beginning January 1, year 1, in order to accumulate ₱5,000.00 on the date of the last deposit, January 1, year 6? (Ans: ₱717.00)
3. Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is 12% compounded quarterly, how much was initially borrowed if quarterly payments is ₱2,000.00? (Ans: ₱10,834.38)
4. Maintenance cost of an equipment is ₱20,000.00 for 2 years, ₱40,000.00 at the end of 4 years and ₱80,000.00 at the end of 8 years. Compute for the semi-annual amount that be set aside for this equipment. Money worth 10% compounded annually. (Ans: ₱7,425.00)
5. A man agreed to pay the loan he is borrowing from the bank in six equal end-of-the-year payments of ₱71,477.70. Interest is 18% per annum compounded annually and is included in the yearly amount he will be paying the bank. How much money is the man borrowing from the bank? (Ans: ₱250,000.59)
6. A man wishes to have ₱35,000 when he retires 15 years from now. If he can expect to receive 4% annual interest, how much he set aside in each of 15 equal annual beginning of each year deposits? (Ans: ₱1,603.70)
7. A man owes ₱100,000.00 with interest at 6% payable semi-annually. What equal payments at the beginning of each 6 months for 8 years will discharge his debt? (Ans: 772.92)
8. Under a factory savings plan, a workman deposits ₱2,500.00 at the beginning of each month for 4 years, and the management guarantees accumulation of 6% compounded monthly. How much stands to the work man’s credit at the end of 4 years. (Ans: ₱1,359.71)
9. Six hundred pesos is deposited each year into savings bank account that pays 6% nominal interest, compounded continuously. How much will be in the account at the end of 8 years.(Ans: ₱5,977.77)
10. Each year a single payment of ₱1,766.00 is deposited in an account that earns 6% compounded continuously. What is the amount in the account immediately after the 5th payment? (Ans: ₱9,991.67)
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