Problem 1

In order to save for her high school

graduation, Marie decided to save ₱200 at the
end of each month. If the bank pays 25%
compounded monthly, how much will her
money be at the end of 6 years?

Questions:
1. What did you observed in the computation
of future value for a simple ordinary annuity?
2. What did you observed in the computation
of present value for a simple ordinary
annuity?

Problem 2
Mrs. Alba is known for her bussiness for
buying palay in Piacan, this community
selling palay is known them as ALILI.She
would like to know the present value of her
monthly deposit of ₱5, 000 when interest rate
is 5% compounded monthly. How much is the
present value of her savings at the end of 1
year?

Questions:
1. What did you observed in the computation
of future value for a simple ordinary annuity?
2. What did you observed in the computation
of present value for a simple ordinary
annuity?