31. Suppose Mrs.

Remoto would like to save P3000 every month in a fund that gives 9%
compounded monthly. How much is the amount or the future value of her savings after 6
months?

(1+i)n −1
F = A( ¿
i
0.09 6
(1+ ) −1
12
= 3000( ¿
0.09
12
= PHP 18 340.89

32. In order to save for her high school graduation. Marie decided to save P200 at the end of
each month. If the bank pays 0.25% compounded monthly, how much will her money be at the
end of 6 years?

(1+i)nt −1
F = A( ¿
i
0.0025 (12)(6 )
(1+ ) −1
12
= 200( ¿
0.0025
12
= PHP 14 507.02

33. Rose works very hard because she wants to have enough money in her retirement account
when she reaches the age 60. She wants to withdraw P36000 every 3 months for 20 years starting
3 months after she retires. How much must Rose deposit at retirement at 12% per year
compounded quarterly for the annuity?

1−(1+i)−n
P = A( ¿
i
0.12 −(20)(4 )
1−(1+ )
4
= 36000( ¿
0.12
4
= PHP 1 087 227.48

34. Paolo borrowed P100000. He agrees to pay the principal plus interest by paying an equal
amount of money each year for 3 years. What should be his annual payment if interest is 8%
compounded annually?
 1−(1+i)−n
P = A( ¿
i
1−(1+ 0.08)−3
100000 = A( ¿
0.08
A = PHP 38 803.35

35. Mr. Ribaya would like to save P500000 for his son’s college education. How much should he
deposit in a savings account every 6 months for 12 years if interest is 1% compounded semi-
annually?

(1+i)n −1
F = A( ¿
i
0.01 (12)(2)
(1+ ) −1
2
500000 = A( ¿
0.01
2
A = PHP 19 660.31

36. Mr. Santos paid P200000 as down payment for a car. The remaining amount is to be settled
by paying P16200 at the end of each month for 5 years. If interest is 6% compounded monthly.
What is the cash price of his car?

1−(1+i)−n
P = A( ¿
i
0.06 −(12)(5)
1−(1+ )
12
= 16200( ¿
0.06
12
= PHP 837 954.08
= PHP 837 954.08 + PHP 200 000
= PHP 1 037 954.08

37. The buyers of house and lot pays P200000 cash and P10000 at the end of each month for 20
years. If money 9% compounded monthly, how much is the cash value of the lot?

1−(1+i)−n
P = A( ¿
i
 0.09 −(12)(20)
1−(1+ )
12
= 10000( ¿
0.09
12
= PHP 1 111 499.54
= PHP 1 111 499.54 + PHP 200 000
= PHP 1 311 499.53

38. Lucas saved P5000 at the end of every 6 months in an education plan earns 6% per year
compounded semi-annually. What is the amount at the end of 18 years?

(1+i)nt −1
F = A( ¿
i
0.06 (2)(18)
(1+ ) −1
2
= 5000( ¿
0.06
2
= PHP 316 379.72

39. If you pay P50 at the end of each month for 40 years account that will pays interest at 9%
compounded monthly, how much money do you have after 40 years?

(1+i)nt −1
F = A( ¿
i
0.09 (12)(40)
(1+ ) −1
12
= 50( ¿
0.09
12
= PHP 234 066.01

40. Chris started to deposit P1000 monthly in a fund that pays 6% compounded quarterly. How
much will be in the fund after 15 years?

(1+i)nt −1
F = A( ¿
i
0.06 (12)(15)
(1+ ) −1
12
= 1000( )
0.06
12
= PHP 290 818.71