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SH1612

Mesmerized and Annuitized
Annuities
Directions: Solve the following items.
1. Payments of ₱3,500 will be made at the beginning of every month for 20 years. If this annuity
is compounded monthly at an interest of 7.25%, solve for the future and present value of this
annuity.
2. Solve for the present and future value of an ordinary annuity if payments of ₱7,500 are made
every quarter for 15 years at 5% interest compounded quarterly.
3. Josh made payments amounting ₱25,000 every quarter for 12 years, to be compounded
quarterly at 4.5% interest. How much is the present value of this annuity if it will be
deferred for 2 years?

Mesmerized and Annuitized

*Property of STI
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