Carpio, Clarence A April 8, 2022 49 ~ 09922 ME - 5208 \. Determine the present worth and the occumuloted omount of annuity Conéieting of © poyments of PI20,000 each, the payment are made at the beginning of each year. Money is worth 1 ‘le compounded annually. Given - n* © poyments — beginning of each year A+ # 120,000 i= 15% = 0.15 1 " sR A Required : the present worth and the accumulated amount of the annuity Solution For the present vole, [ be ye) PsA) ———— +! 1 P= (# 120,000 [ = P 522,258. Olle P+ # 522, 258.02 For the future value . PCiriy® (# 522, 258. Ol (14 0.197° P 1, 208, 015 904 Pl, 208, 015. 90 i (tO. 101) ueee oC ‘| aan a wfewoe2, Whot ic the future worth of P00 deposited at the end of every month for 4 years if the interest is 12 ‘lo compounded annually? Given + 1* (12)¢4) = 48 payments — end of every month A= ? 000 in = 0.12 I" I" | oo tt ee Ht A Required : the future worth of money deposited Solution For the corresponding interest, Ve CL t md -1 an 0.12 \2 ve (14 yy i = 0.00990109400 Tor the future value, 4 Fe al (itil 1] : : C14 0,00990103405 148 - 1 Fe (#00 [ 0.0099016340! ] Fs 20,042. 82099 Fs £00, 042.833. By the condition of a will the sum of 725,000 ie left to be held in Trust by her guardian yntil tt amounts to F 45.000. When will the gid teceive the money if the fund ie invected at 8 ‘lo compounded semi- annually ? Gwen. P = ® 25,000 F = P 49,000 i * 8% = 0.08 — compounded semi - annually Required : the time needed to achive future value desired Solution For the time needed, Foe P Citrine # 45,000 = 725,000 ( | + 0:08/2 " F 25,000 26-000 1.8 = (1 40.04) 29 fog 1-8 = 2nlog (1.04) 493919449 yearo -5 yeors 1