Long Quiz #3 February 13, 2014 4. Find the total interest.

Chapter 2: Annuity Prof. Carlos F. Garcia, MST

a. P 64,084.00 b. P 24,215.48 c. P 48,980.36 d. P 46,316.00
Answer the following problems in the given order. Show the complete solution
legibly and systematically. DO NOT borrow anything from your classmates. DO NOT write For items 5-6, refer to the given problem and answer the questions.
anything on the questionnaire.
CHEATING is a major offense. For each 3 months in 4.5 years, Vong Tahong deposits P 55,607.35 in a fund that
pays 13% interest compounded quarterly.
Part 1. MULTIPLE CHOICE. Read and analyse each problem carefully. Choose the letter
of the correct answer and write it before each number. A correct response is worth two 5. Compute Vong’s fund value after his last deposit assuming no withdrawals were
(2) points. No solution-No (partial) point Rule shall be applied. made.

For items 1-4, answer the following: a. P 3,042,775.59 b. P 923,907.74 c. P 1,331,780.21 d. P 748,878.69

A loan of P 230,000 is to be amortized including interest every six (6) months in 6 6. Find the total interest earned in the fund.
years. The rate of interest charged is 8% converted semi-annually.
a. P 330,847.91 b. P 77,024.56 c. P 2,041,843.29 d. P 252,053.61
1. How many semi-annually payments are required to repay the loan?
For items 7-11, read the problem below and answer the questions.
a. 6 b. 12 c. 24 d. 36
Chef Ratatouille buys a new set of cutlery worth P 435,000 for his newly modelled
2. Compute the periodic interest rate. carenderia in CSB Hostel. He agrees to pay P 75,000 as down payment and the balance
including interest will be amortized by equal monthly payments for 3 years at 15%
a. 2% b. 6% c. 4% d. 8% compounded monthly.

3. How much is the semi-annual payment? 7. Compute his balance (without interest) after his initial payment of P 75,000.

a. P 17,148.71 b. P 24,507.00 c. P 15,307.00 d. P 15,084.97 a. P 435,000 b. P 510,000 c. P 360,000 d. P 65,250

8. What is the size of his monthly dues? 13. How much interest has been earned in the fund on the 10 th deposit date?

a. P 12,479.52 b. P 15,079.42 c. P 17,679.32 d. P 7,979.52 a. P 3,144.49 b. P 5,614.35 c. P 4,013.45 d. P 2,804.93

9. How much is his outstanding principal after the 15th payment? 14. Compute the fund value if thirty (30) deposits have already been made.

a. P 169,728.28 b. P 277,004.35 c. P 179,958.33 d. P 229,244.98 a. P 179,685.28 b. P 647,625.78 c. P 1,296,285.90 d. P 675,557.72

10. How much principal has been repaid after the 20th payment? 15. Determine the increase in the fund after his 25th deposit.

a. P 10,230.04 b. P 10,103.74 c. P 10,229.00 d. P 9,613.96 a. P 25,611.15 b. P 26,059.34 c. P 25,170.66 d. P 10,945.68

11. What part of the 30th monthly payment went to interest?

Part 2. Construct the LAST THREE (3) lines of the amortization or the sinking fund
a. P 3,882.50 b. P 2,249.48 c. P 1,039.35 d. P 2,375.78 schedule for the following problems. (10 points each)

A. A loan of P 350,000 will be amortized every 6 months as to payment of interest

For items 12-15, read the problem below and solve for the unknown quantity.
In order to create a sinking fund worth P950,000 at the end of 10 years, a man sets
aside a sum of money every 3 months that earns interest of 7% compounded quarterly.
12. How much will he set aside every quarter in 10 years?
and repayment of the principal for as long as necessary at 5.25% compounded
semi-annually. The semi-annual instalment is P 17,045.67. (Solve for n first)
B. At the end of each 3 months in 8 years, Pokwang will deposit P 15,850.45 in a
trust fund that earns 14% converted quarterly.

a. P 16,598.49 b. P 33,223.49 c. P 23,750.23 d. P 4,758.68