SIMPLE ANNUITY
1. Suppose Mrs. Remoto would like to save
3,000 every month in a fund that gives 9%
compounded monthly. How much is the
amount or future value of her savings after
6 months? Answer: 18340.89
2. In order to save for her high school
graduation, Marie decided to save 200 at
the end of each month. If the bank pays
0.250% compounded monthly, how much
will her money be at the end of 6 years?
Answer: 14507.85
3. Suppose Mrs. Remoto would like to know
the present value of her monthly deposit of
3000 when interest is 9% compounded
monthly. How much is the present value of
her savings at the end of 6 months?
Answer: 17536.79
#NOTE: The cash value or cash price is equal to
the down payment plus present value.
Cash Value = Down payment + Present Value
4. Mr. Ribaya paid 200,000 as down payment
for a car. The remaining amount is to be
settled by paying 16,200 at the end of each
month for 5 years. If interest is 10.5%
compounded monthly, what is the cash
price of his car? Answer: 953,702.20
5. Paolo borrowed 100,000. He agrees to pay
the principal plus interest by paying an
equal amount of money each year for 3
years. What should be his annual payment
if interest is 8% compounded annually?
Answer: 38,803.35
6. Aling Paring started to deposit 2,000
quarterly in a fund that pays 5.5%
compounded quarterly. How much will be
the fund after 6 years? Answer: 56,413.75
7. The buyer of a house and lot pays 200,000
cash and 10,000 every month for 20 years.
If money is 9% compounded monthly, how
much is the cash value of the lot? Answer:
1,311,449.54
8. Grace borrowed 150,000 payable in 2 years.
To repay the loan, she must pay an amount
every month with an interest rate of 6%
compounded monthly. How much should
he pay every month? Answer: 6,648.09
9. Mr. Ribaya would like to save 500,000 for
his son’s college education. How much
should he deposit in a savings account every
6 months for 12 years fi interest is at 1%
compounded semi-annually? Answer:
19,660.31
10. A refrigerator is for sale at 17,999 in cash or
on terms, 1,600 each month for the next 12
months. Money is 9% compounded
monthly. Which is lower, the cash price or
the present value of the installment terms?
Answer: 18,295.86
SIMPLE ANNUITY
1. Suppose Mrs. Remoto would like to save
3,000 every month in a fund that gives 9%
compounded monthly. How much is the
amount or future value of her savings after
6 months? Answer: 18340.89
2. In order to save for her high school
graduation, Marie decided to save 200 at
the end of each month. If the bank pays
0.250% compounded monthly, how much
will her money be at the end of 6 years?
Answer: 14507.85
3. Suppose Mrs. Remoto would like to know
the present value of her monthly deposit of
3000 when interest is 9% compounded
monthly. How much is the present value of
her savings at the end of 6 months?
Answer: 17536.79
#NOTE: The cash value or cash price is equal to
the down payment plus present value.
Cash Value = Down payment + Present Value
4. Mr. Ribaya paid 200,000 as down payment
for a car. The remaining amount is to be
settled by paying 16,200 at the end of each
month for 5 years. If interest is 10.5%
compounded monthly, what is the cash
price of his car? Answer: 953,702.20
5. Paolo borrowed 100,000. He agrees to pay
the principal plus interest by paying an
equal amount of money each year for 3
years. What should be his annual payment
if interest is 8% compounded annually?
Answer: 38,803.35
6. Aling Paring started to deposit 2,000
quarterly in a fund that pays 5.5%
compounded quarterly. How much will be
the fund after 6 years? Answer: 56,413.75
7. The buyer of a house and lot pays 200,000
cash and 10,000 every month for 20 years.
If money is 9% compounded monthly, how
much is the cash value of the lot? Answer:
1,311,449.54
8. Grace borrowed 150,000 payable in 2 years.
To repay the loan, she must pay an amount
every month with an interest rate of 6%
compounded monthly. How much should
he pay every month? Answer: 6,648.09
9. Mr. Ribaya would like to save 500,000 for
his son’s college education. How much
should he deposit in a savings account every
6 months for 12 years fi interest is at 1%
compounded semi-annually? Answer:
19,660.31
10. A refrigerator is for sale at 17,999 in cash or
on terms, 1,600 each month for the next 12
months. Money is 9% compounded
monthly. Which is lower, the cash price or
the present value of the installment terms?
Answer: 18,295.86