formulating own localized problems involving

SIMPLE AND
GENERAL ANNUITIES
GROUP 3
PROBLEM 1
Eira took a loan on a bank of ₱
1,500,000 to buy a brand new
house and lot. Amounting to that
same price. If the bank charges 5%
compounded monthly, and she
pays ₱ 15,000 at the end of each
month. How much will her total
payment be after 15 years?
Given: Solution:
F=?
P = ₱ 1,500,000 F=
R = ₱ 15,000
r = 5% / 0.05 F=
m = 12
t = 15 yrs Answer:
i = r/m 0.00416666666
n = 180 F = ₱4,009,334.16
PROBLEM 2
As a gift for her daughter, Mrs.
Aquino would like to purchase an
Iphone, with a two year payment
plan beginning at the end of the
month. If she chooses an Iphone
with a monthly payment of ₱ 2,600
and a 5% quarterly compounded
interest rate, how much will it cost
her?
Given: Solution:
P=? m
r k
j = (1+ m ) -1
R = ₱ 2,600
r = 5% / 0.05 j = 0.00414942512
m=4
P=
t = 2 yrs
n= 24 P=
i = r/m
0.0041666666
k=12 Answer:
P= ₱59276.65
PROBLEM 3
Mr. Manzanero would like to
save ₱ 1,000,000 for his son's
college fees. How much should
he deposit in a savings account
every 6 months for 12 years if
the interest rate is 3%
compounded annually.
 Solution: Solution:
m F= ₱ 1,000,000
r
j = (1+ m ) k -1
n = 24
j = 0.01488915651 k= 2
R= r = 3% / 0.03
m=1
j
t = 12 yrs
Answer: i = r/m 0.03
R = ₱34970.70
THANK
YOU
Problems involving Simple and
General Annuity