Annuities Asynchronous Activity

1.
Find the future value of a 2,000 ordinary annuity

payable every month at the end of 2 yrs. If money is
worth 10% compounded quarterly.
2. Alex decides to save 1000 at the end of each
quarter, which is the amount paid into his
works. If he chooses an investment fund that
guarantees 10% per year compounded quarterly,
how much will he have in 5 yrs. and 6 mos.?
3. What amount must you invest today at 6%
compounded annually so that you can
withdraw 50,000 at the end of each year for the
next 5 years?
4. A family wants to buy a home costing P60,000.00.
If they pay P10,000.00 cash, how much will their
monthly payments be if they get a 20-year mortgage
with a rate of 9% converted monthly?
R= 449.8629779 or
449.86
5. On June 1, 1984, a widow takes the P10,000 benefits
from her husband’s insurance policy and invests the
money at 6% converted monthly with the understanding
that she will receive 120 equal payments. If she is to get
her first check on July 1, 1984, what will be the size of
each monthly payment?
R= 111.0205019 or 111.02
6. A person wants to accumulate P3,000 in 6 years.
Equal deposits are made at the end of each 6
months in a savings account paying 6% converted
semiannually. What is the size of each deposit?
R= 211.3862564 or 211.39
7. At what rate computed monthly can Luis
purchase an annuity of P2,000 payable monthly for
2¾ years if the present value of such an annuity is
P20,000?
8. Payments of P2,000 each are made at the end of
every 3 months for 3½ years. At what rate
compounded quarterly are these obligations
equivalent to a cash payment of P25,000?
9. Janice puts up a fund by depositing P2,100 at the
end of every half month. If in 2½ years P150,000 is
credited in her account, at what interest rate is
compounded monthly, does the fund accumulate?
10. Alex borrows ₱ 60,000 and agrees to repay it by
paying ₱ 3,000 at the end of every six months. If the
interest charged is 8% compounded semi-annually,
how long will he have to pay?
11. Hermann wishes to borrow ₱15,000 so he can pay
his tuition. In order for him to pay, he must give
quarterly payments amounting to ₱3,000 with an interest
of 9%. How long will he pay for his debt?
12. Mr. Liang wishes to accumulate ₱ 240,000 by
contributing ₱ 20,000 every end of six months for her
daughter’s education. If the fund is charged 8%
compounded semi-annually, how long will he have to
pay the fund?
Sn
13. What amount will accumulate if we deposit
Php5,000 at the beginning of each year for the next 5
years? Assume an interest of 6% compounded
annually.
14. Gester Pascual deposited Php20,000 at the
beginning of each year for 8 years in his savings
account. If his bank paid 5% interest compounded
annually. Find the future value of Gester’s account.
R
15. Mr. Haron was elected when he won a lottery
paying P1,000,000 at the beginning at each year for
15 years. Find the amount he must set aside today to
satisfy this annually at 12% compounded annually.
16. Instead of taking the lump sum pension fund of P 500,000, Mr Pua opted
to receive equal monthly pension for 8 yrs with first payment due now. If
Interest is computed at 15% compounded monthly, find the size of the
monthly pension.
17. Mr. Moraga has a debt of P 350,000 in a bank , what
equal payments of each 6 months for 15 yrs will pay off
the debt if money is worth 16% compounded semi-
annually?
18. A public servant retires with P325,000 in superannuation. He
is offered an annuity for the next 15 years where he will receive
monthly payments. If the interest rate is 8% compounded monthly,
determine the size of the monthly payment.
R = 3,105.87
19. If P1,000 is deposit at the beginning of each month at an interest
rate of 9% compounded monthly, how many months will be required
for the deposits to amount at least P76,000?
R = P1,000 j = .09 Sdue = P76,000
m = 12 i =.09/12 = .0075
20. If P6,000 is deposited at the beginning of each month at 9%
compounded monthly, how many months will be needed for the
deposits to amount to at least P300,000?
R
n = 42.34 quarters
21. If Mheg store invest 2,000 at the beginning of each
month at 12% compounded monthly, how much would
be in the account after 5yrs?
22. What lump sum of money should be invested in a fund at a child’s
birth to provide annual payments of P2,000 to cover expenses for 5 years
tertiary education if the first payment is to be made in the child’s 19 th
birthday? The fund earns 7% interest rate compounded annually.
A = P2,426.20
23. Shara bought a car by paying P35,000 down payment and 15 semi-annual
payment of P17,500 each the first due at the end of 1 year. If money is worth
12% compounded semi-annually, find the cash value of the car.
Cash value = Down payment + A

Cash value = 35000 + 84,467.08
Cash value = 119,467.08
24. Find the monthly payment for 2 years to settle a debt of P13,
000 at 8% compounded monthly. The first payment is due at the
end of 9 months.
25. Find the length of deferral period of a 1,121 php quarterly
payments for 4 years to settle a debt of 12,000 php. Money is worth
12 % compounded quarterly and the first payment is due at the end
of 2 years.

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1.

Find the future value of a 2,000 ordinary annuity

Cash value = Down payment + A

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