Name:____________________________________________________Date:___________________

Problem Solving: Simple Annuity

Instruction: Answer the problem carefully..Show your solution for every problems.
Final answer was indicated at the choices.. compute to get the correct answer (5 points for correct answer with solution)
 Identify what is asked,what are given and the formula to be used.

1. A payment of ₱500 will be paid at the end of every year at 6% interest compounded annually for five years. Find its
present value.
a. ₱4106.18 b. ₱2106.18

2. A payment of ₱100 will be paid at the end of each three months at 8% interest compounded quarterly for 10 years.
Find its accumulated value.
a. ₱10 040.20 b. ₱9040.20 c. ₱6040.20
3. Find the present value of an annuity due of ₱1200 paid every six months for five years at 7% compounded
semiannually.
a. ₱14 756.66 b. ₱10 329.22

4. Mrs. Lhea Pendon deposits ₱500 at the end of each month for 30 months. If the deposit is worth 6% compounded
monthly, how much will be her account at the end of 30 months?
a. ₱16 140.01 b. ₱116 140.01
5.