SMED9 Due: July 2, 2020 (12 Midnight)

Seatwork 3

1. Find the amount of an annuity of P5,000 payable at the end of each 2 months for 8 years, if
money is worth 12% compounded bimonthly.

2. Christine’s aunt puts P3,000 at the end of every 3 months in a savings account that pays 9%
interest, compounded quarterly. If the first deposit was made on January 15, 2009, how much
will she have in her account just after her deposit on October 15, 2011?

3. If money is worth 7 ½%, converted semiannually, what single payment now is equiavalent ro
10 semiannual payments of P62,500?

4. At the time of his son’s birth, a man invests a certain sum of money at 8%, compounded
quarterly, to provide quarterly payments of P60,000 each for four years, the first payment to be
made on his son’s 20th birthday. How much does the father invest?

5. Melvin wishes to accumulate P670,000 in 5 years. How much should he invest each quarter
at 10%, compounded quarterly?

6. A couple buys a house and lot for P2,700,000, agreeing to pay P600,000 cash and to make
equal monthly payments for 12 years. If money is worth 8%, compounded monthly, find the
amount of each monthly payment.

7. If a man deposit P50,000 a month in a bank that pays 7%, compounded monthly, how long
will it take before he can buy a brand new car worth P1,330,000 cash?

8. At what rate, compounded semiannually, will P50,000 invested every 6 months accumulate
to P8,450,000 in 50 years?