TASK: ANNUITY

Handwritten.
Copy and Answer. Show COMPLETE solution.
Write the Given values and the Required value in your solution.

1. What is the present worth of a P5000 annuity over a ten-year period, if the interest rate is 8%.
2. How much money must you invest today in order to withdraw P50,000 per year for 10 years if the
interest rate is 12%?
3. An investment of P1000 is made at the end of each year for three years, at an interest rate of 9%
per year compounded annually. What will the total investment be upon the deposit of the third
payment?
4. If 25000 is invested at the end of each year for six years, at an effective annual interest rate of
7%, what is the total amount available upon the deposit of the sixth payment?
5. What annuity over a 10-year period at 8% interest is equivalent to present worth of $100?
6. Mr. Reyes borrowed P15,000 two years ago. The terms of loan are 10% interest for 10 years with
uniform payments. He just made his 2nd annual payment. How much principal does he still owe?
7. An investment of P350,000 is made, to be followed by payments of P200,000 each year for three
years. What is the annual rate of return on investment for this project?
8. A loan was amortized by group of four year-of-end payments forming ascending arithmetic
progression. The initial payment was to be P 5000 and the difference between successive
payments was to be 400. But loan was renegotiated to provide for the payments of equal rather
than varying sums. Find the annual payment if the interest rate of the loan was 15%?
9. A debt of P10,000 with interest at the rate of 20% compounded semi-annually is to be amortized
by 5 equal payments at the end of each 6 months. What is the amortization if the first payment is
to be made after 3 years?
10. Today a businessman borrowed money to be paid in 10 equal payments for 10 quarters. If the
interest rate is 10% compounded quarterly and the quarterly payment is P2000, how much did he
borrow?