1.

Find the amount of an annuity of P550 payable every end of six months for 14 years and 6 months if
money is worth 3 ½% compounded semiannually

1−( 1+i )−n

Ao = R
i

1−( 1+.0175 )−29

Ao = 550
(.0175)

Ao= 12, 425.38

2.Given:

Adue= 30,500 j=.04 m= 12 n= 80 i= .04/12

Solution:

Adue∗i
Radue=
( 1+i )−(1+ i)1−n
.04
30,500∗(
)
12
Radue=
( )
1−80
.04 .04
1+ −(1+ )
12 12
Radue= 433.53

3. Instead of taking P400,000 cash from a fund, a beneficiary prefers to receive monthly dividends for 7
years with the first payment to be made now. If money is invested at 11% compounded annually, what will
be the monthly dividend?

Celestial Nicole Vergaño

4. Given: R= P2,200 m=1 t=5

Solution: i= 7% ÷ 1= 7% n=

Periodic Payment:

So=2,200 [
( 1+.07 )5−1
.07 ]
So= 12, 651.63

No. of Payment Periodic Deposit Interest in Fund Increase in Fund Amount in Fund
1 P2, 200 0 2, 200 2, 200
2 P2, 200 154 2, 354 4, 554
3 P2, 200 318.78 2, 518.78 7, 072.78
4 P2, 200 495.0946 2, 695.0946 9, 767.8746
5 P2, 200 683.7512 2, 883.7512 12, 651.6258
 6 P2, 200 885.61 3, 085.61 15, 737.24

Celestial Nicole Vergaño

5. Solution: W= 6,000 - 200= 5,800 R= 5,800 ÷ 6 = 966.67

Year Annual Depreciation Accumulated Book Value

Depreciation
1 966.67 966.67 5, 033.33
2 966.67 1,933.33 4, 066.67
3 966.67 2, 900 3, 100
4 966.67 3, 866.67 2, 133.33
5 966.67 4, 833.33 1, 166.67
6 966.67 5, 800 200

Celestial Nicole Vergaño

6. Given: O= 25, 000 r= 12%

Year Annual Depreciation Accumulated Book Value

Depreciation
0 0 0 25, 000
1 3, 000 3, 000 22, 000
2 2, 640 5, 640 19, 360
3 2, 323.2 7, 963.2 17, 036.8
4 2, 044.416 10, 007.616 14, 992.384
5 1, 199.086 11, 806.70 13, 193.30

Celestial Nicole Vergaño

7. Given: O= 78, 000 S= P10, 000 n= 205,000 hours

W= 78, 000 – 10, 000

W= 68,000

Annual Depreciation

1st year 68,000 (15,000 ÷ 205,000) = 4, 975.61

2nd year 68,000 (18,350÷ 205,000) = 6, 086.83

3rd year 68,000 (24,850 ÷ 205,000) = 8, 242.93

4th year 68,000 (34,760 ÷ 205,000) = 11, 530.15

5th year 68,000 (55,000 ÷ 205,000) = 18, 243.90

6th year 68,000 (30,600 ÷ 205,000) = 10, 150.24

7th year 68,000 (18,210 ÷ 205,000) = 6, 040.39

Year Annual Depreciation Accumulated Book Value

Depreciation
0 0 0 78, 000
1 4, 975.61 4, 975.61 73, 024.39
2 6, 086.83 11, 062.44 66, 937.76
3 8, 242.93 19, 305.37 58, 694.83
4 11, 530.15 30, 835.51 47, 164.68
5 18, 243.90 49, 079.41 28, 920.78
6 10, 150.24 59, 229.66 18, 770.54
7 6, 040.39 65, 269.85 12, 730.15