Republic of the Philippines

ILOILO SCIENCE AND TECHNOLOGY UNIVERSITY

Miagao Campus
Miagao, Iloilo
Website: www.sipc.edu.ph ∙ E – mail Add: admin.sipc@edu.ph
Tel. No. 315-8164, 315-9755, Fax No. 315-8164
MATH 112: MATHEMATICS OF INVESTMENTS
FINAL EXAMINATION
FIRST SEMESTER, A.Y. 2021-2022

Answer the following questions. For problem solving, show all your solutions and encircle your final answer/s.

1. SIMPLE ANNUITY OR GENERAL ANNUITY? Defend your answer. (5 points each)

1.a. Payments are made at the end of each month for a loan that charges 2.3% interest compounded
quarterly.

1.b. A deposit of P 6,000.00 was made at the end of every three months to an account that earns 6%
interest compounded quarterly.

2. ORDINARY ANNUITY OR ANNUITY DUE? Defend your answer. (5 points each)

2.a. Alvin’s monthly mortgage payment is P 25,000.00 at the end of each month.

2.b. The rent for a boarding house is P 3,000.00 and due at the beginning of each month.

3. Define stocks and bonds. Describe the difference between a stock and a bond. (10 points)

4. An air-conditioner cost 18,170 pesos in cash or 1,598 pesos each month for the next 12 months. Money is
9% compounded monthly. Which is higher, the cash price or the present value of the instalment terms? (10
points)

5. Arriane plans to save her money in a bank. How much should she deposit in her account every 3 months to
accumulate 450,000 in 3 years if it pays an interest of 4.5% compounded annually? (10 points)

6. Kezia wants to sell their property and to deposit the fund in a bank. She learned that she may withdraw
485,000 pesos yearly for 7 years starting at the end of 5 years when it is the time for her to retire. How much
is the fund deposited if the interest rate is 6% converted annually? (10 points)

7. Differentiate simple annuity, general annuity and deferred annuity. (10 points)

8. A land developer declared a dividend of P 25,000,000.00 for its common stocks. Suppose there are 400,000
shares of common stock, how much is the dividend per share? (10 points)

9. In order to have a fund of P 1,500,000.00 at the end of 14 years equal deposits every six months must be
made. Find the semi-annual payment if interest is at 5% compounded annually. (10 points)

10. Jesyl borrowed P 250,000.00 in a lending company which is payable in 3 years. To repay the loan, she
must pay an amount every month with an interest rate of 7.5% compounded monthly. How much should she
pay every month? (10 points)

Total: 100 points

Prepared by:

MRS. JENNY N. SEDANO

Subject Teacher