Gen Annuity Nolian

GENERAL ANNUITY

–It is an annuity where the length of the payment interval is not the same as the length of the

–A general annuity in which the periodic payment is made at the end of the payment interval.

– A cash flow is a term that refers to PAYMENT RECEIVED (CASH INFLOWS) OR PAYMENTS OR DEPOSITS MADE ( CASH OUTFLOWS). – Cash in flows can be represented by positive

Cris started to deposit P1,000 monthly in a fund that pays 6% compounded quarterly . How much will be in the fund after 15 years?

F=R

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A teacher saves P5,000 every 6 months in a bank that pays 0.25% compounded monthly. How much will be her savings after 10 years?

F=R

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Ken borrowed an amount money from Kat. He agrees to pay the principal plus interest by paying P38,973 .76 each year for 3 years. How much money did he borrowed if interest is 8% compounded quarterly?

F=R

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– Mrs. Remoto would like to buy a television (TV) set payable for 6 months starting at the end of the month. How much is the cost of the TV set if her monthly payment is P3,000 and interest is 9% compounded semi-annually?

F=R

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Which offer has a better market value? Company A offers P150,000 at the end of 3 years plus P300,000 at the end of 5 years. Company B offers P25,000 at the end of each quarter for the next 5 years. Assume that money is worth 8% compounded annually.

P150,000 at the end of 3 years P3000,00 at the end of 5 years

P25,000 at the end of each quarter for the next 5 years

Find: fair market value of each offer

Mr. Ribaya received two offers on a lot that he wants to sell to Mr. Ocampo has offered P50,000 and 1 million lump some payment 5 years from now. Mr Cruz has offered 50,00 plus 40,000 every quarter for five years. Compare the fare market values of the two offers if money can earn 5% compounded annually. Which offers has a higher market value.

P50,000 down payment

P50,000 down payment

P1,000,000 after five years

P40,000 every quarter for five years

Find: fair market value of each offer

ABC Bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at the end of 5 years if he deposits 3,000 every month?

Find: F

A sala set is for sale at P16,000 in cash or on monthly installment of P2,950 for 6 months at 12% compounded semiannually. Which is lower: the cash price or the present value of the installment term?

Find: present value P

To accumulate a fund of P500,000 in 3 years, how much should Aling Paring deposit in her account every 3 months if it pays an interest of 5.5% compounded annually.

Find: quarterly deposit R