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Find the present value and amount of an annuity of P13 250, payable quarterly
for 2 years and 6 months at 11% compounded quarterly.
Given: j = 0.11 t = 2.5 m= 4 R = 13 250 n= 10 i = 0.44
1−(1+i)−n
A=R
i
1−(1+ 0.44)−10
A = 13 250
0.44
A = P29,328.15
(1+i)n −1
S=R
i
(1+0.44)10−1
S = 13 250
0.44
S = 1 124 370.91
2. What is the amount of a four-year ordinary annuity whose present value is P100
000 if money is worth 2.75% interest compounded monthly?
Given: j = 0.0275 t = 4 m = 12 R= ? A = P100 000 n = 48 i = 0.11
A 100000
(1+i)n −1
S=R R = (1+ i)n−1 R = 1−(1+0.11)− 48
i
i 0.11
(1+i)n −1 100000
S=R R= R = 11,073.92
i 9.03022088027
(1+0.11)48−1
S = 11 073.92
0.11
S = 14 979 686.93