Find the present value of the amount each annuity in each of the following problem.
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A: In this we have to calculate interest rate for the period.
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Q: The future value of an annuity due is: one period after the final payment. one period before the…
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complete solution/explanation
Find the present value of the amount each annuity in each of the following problem.
Step by step
Solved in 3 steps
- Every end of three months, payment of Php 1,300 is made for 5 years, which is deferred for 2 years. The money is worth 12% compounded quarterly. What is the present value? Php 15,276.74 Php 15,276.47 Php 15,267.74 Php 15,267.47Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next followingyears up to 4 years. Find the equivalent present worth of these deposits if it earns on an account @10% compounded annually.Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next followingyears up to 4 years. Find the equivalent future worth of the deposits if it earns on an account @ 10%compounded annually.
- 1. If ₱40,000 is invested for 6 years at 5% compounded quarterly.a. Find the compound amount.b. Find the compound interest.2. ₱ 20,000 is invested for 15 years at 5 % compounded semi-annually.a. Find the compound amount.b. Find the compound interest.3. Find the amount of annuity of ₱700 every 6 months (1⁄2 year) for 12 years ifinterest is 6% compounded monthly.Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next followingyears up to 4 years. Find the equivalent single deposit if it earns on an account @ 10% compoundedannually.Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate of 6% for 5 years. How many times is compunding done in a year. What is the initial or rincipal amount. then what is the rate of interest?
- 3. Five thousand pesos is deposited at the end of each year for 15 years into an account earning 7.5% compounded continuously. Find the amount after 15 years.What is the compound amount of Php 10,000.00 for 3 years at 10% compounded semiannually?Find the cash equivalent of an item that was purchased for P1,900 down payment and P350 at the beginning of each six months for 3 years and 6 months, if interest is 5% compounded semiannually.
- 2. A debt of ₱10,000 with interest rate of 20% compounded semiannually is to be amortised by 5 equal payments at the end of each 6 months, the first payment to be made after 3 years. Find the semiannual payments and contract an amortization schedule.A man owes ₱100,000 with interest at 6% payable semi-annually. What equal payments at the beginning of each 6 months for 8 years will discharge his debt?What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for 2 years?