GENERAL MATHEMATICS

Name: ____________________________________________________ Date: __________________ SCORE:

Strand/Year/Section: _____________________

Activity 5 (2nd Quarter)

GENERAL ANNUITY
1. Mrs. Remoto would like to buy television (TV) set for 6 months starting at the end of the month. How much is
the cost of the TV set if her monthly payment is P3,000.00 and interest is 9% compounded annually?
Given: (1 pt.)
Find: (1 pt.)
Solution: Compute the future value of the first offer (2 pts.)

Final Answer: (1 pt.)

2. Kat received two offers for investments. The first time one is P150,000.00 every year for 5 years at 9%
compounded annually. The other investment scheme is P12,000.00 per month for 5 years with the same
interest rate. Which fair market value between these offers is preferable?
a) First offer: 150,000 every year for 5 years at 9% compounded annually.
Given: (1 pt.)
Find: (1 pt.)
Solution: Compute the future value of the first offer (2 pts.)

Final Answer: (1 pt.)

a) Second offer: 12,000 per month for 5 years at 9% compounded annually

Given: (1 pt.)

Find: Determine the FMV of the second offer (1 pt.)

Solution: (2 pts.)

Final Answer: (1 pt.)