Name:______________________________________ Strand & Section: ______________

Direction: Read each problem very carefully. Write your answer in the space provided included the back page of this
paper. Explain and show your solution. Below is the Rubric for the problem.

1. A person has P100, 000 which he plans to put in an investment for 3 years. He is choosing between two
investments. Investment A credits 5% interest compounded monthly, while Investment B credits 5.3% interest
compounded quarterly. Which investment is better? Why?

2. Php5, 000.00 at the end of every YEAR in an education plan that earns 6% per year compounded annually. What
is the amount at the end of 18 years?

3. If you will invest Php20, 000.00 at the end of each year for 5 years in an account that pays interest at 10%
compounded annually, you will have the amount for the down payment of the house and lot at the end of 5 years.

4. In order to make equal withdrawals worth Php5,000.00 at the end of every month for the next ten months, how
much should be deposited into an account providing 2.7% interest rate compounded monthly?

5. Alex and Tony are twins. After graduation and being finally able to get a good job, they plan for retirement as
follows:

 Starting at age 24, Alex deposits Php10,000.00 at the end of each year for 36 years.

 Starting at age 42, Tony deposits Php20,000.00 at the end of each year for 18 years.

Who will have the greater amount at retirement if both annuities earn 12% per year compounded annually?