4. Mr. Bueno would like to know the present value of his savings with P 4,500.00 deposit every 6 months for 10 years if the interest is 7% compounded semi-annually. 5. Teacher Kim is saving P 3,000.00 every month by depositing it in a bank that gives an interest of 1.5% compounded quarterly. How much will she save in 8 years?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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please answer only nunber 4 and 5, thank you
Directions. Read and analyze the problems carefully. Write FS if the problem is looking
for the Future Value of a Simple Ordinary Annuity; PS if it asks for the Present Value of a
Simple Ordinary Annuity; FG for the Future Value of a General Ordinary Annuity; and PG
for the Present Value of a General Ordinary Annuity.
a. FS
b. PS
c. FG
d. PG
1. Mrs. Azurin pays P 8,000 monthly for her car for 10 years with an interest rate of 12%
compounded quarterly. How much is the cash price of her car?
2. Milan decided to save P 200 for her high school graduation at the end of every month. If
the bank pays 0.25% compounded monthly, how much will be her money after 5 years?
3. If the interest is 9.5% compounded annually, what is the present value of P 8,500.00
payable at the end of each six months for 7 years?
4. Mr. Bueno would like to know the present value of his savings with P 4,500.00 deposit
every 6 months for 10 years if the interest is 7% compounded semi-annually.
5. Teacher Kim is saving P 3,000.00 every month by depositing it in a bank that gives an
interest of 1.5% compounded quarterly. How much will she save in 8 years?
Transcribed Image Text:Directions. Read and analyze the problems carefully. Write FS if the problem is looking for the Future Value of a Simple Ordinary Annuity; PS if it asks for the Present Value of a Simple Ordinary Annuity; FG for the Future Value of a General Ordinary Annuity; and PG for the Present Value of a General Ordinary Annuity. a. FS b. PS c. FG d. PG 1. Mrs. Azurin pays P 8,000 monthly for her car for 10 years with an interest rate of 12% compounded quarterly. How much is the cash price of her car? 2. Milan decided to save P 200 for her high school graduation at the end of every month. If the bank pays 0.25% compounded monthly, how much will be her money after 5 years? 3. If the interest is 9.5% compounded annually, what is the present value of P 8,500.00 payable at the end of each six months for 7 years? 4. Mr. Bueno would like to know the present value of his savings with P 4,500.00 deposit every 6 months for 10 years if the interest is 7% compounded semi-annually. 5. Teacher Kim is saving P 3,000.00 every month by depositing it in a bank that gives an interest of 1.5% compounded quarterly. How much will she save in 8 years?
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