APPLICATION

Direction. Solve the following problem involving annuity. Show your solution.

Problem 1. A motorcycle is for sale for ₱ 60,500 in cash or on installment terms for ₱ 3,000 per
month for 2 years at 12% compounded annually. If you were the buyer, what would you
prefer, cash or installment? Do it yourself. bye

Problem 2. Dianne is planning to buy a house and lot. The required down payment is ₱300,000. Her
balance will be paid at ₱ 15,200 every month for 20 years. If money is 10% compounded
monthly, how much is the cash value of the house and lot? Do it yourself. bye

Problem 3. In a monthly payment of ₱ 1,000 for 9 years that will start 9 months from now, find the
period of deferral. Do it yourself. bye

Rubrics for the Task: