Republic of the Philippines

Department of Education
Caraga Region
SCHOOLS DIVISION OF SURIGAO DEL SUR

General Mathematics – 2nd Quarter – Summative Test 4

I. Multiple Choice. Choose the letter of the correct answer. (1 point each)
−n
1−( 1+ j )
1. What is the function of this formula X = R ?
j
a. To find terms of investment c. To find future value
b. To find present value of annuity d. To find past annuity
2. In the formula given above what does R means?
a. Remittance c. Rate
b. Periodic Payments d. Interest Period
3. Identify the value of k in “payments of 13,000 every 3 months for 18 years that will
start four years from now”.
a. 12 c. 16
b. 15 d. 20
4. What do you call the period of time between successive payments?
a. Payment Interval c. Term of Annuity
b. Present Value d. Future Value
5. Annual payments of 600 for 7 years that will start 7 years from now, means
a. The time is 7 years ago c. The value of n is 7
b. 600 is to be paid for 7 years d. The value of k is 6
II. Solve for the value of j.
1. ______ compounded quarterly = 8% compounded semi-annually
2. ______ compounded quarterly = 5% compounded annually
III. Solve for k.
1. Payments of 17, 000 every 4 years for 12 years starting at the end of 12 years
2. Monthly payments of 2, 000 for 10 years that will start 8 months from now
IV. Solve for what is asked. Show solutions.
(General Annuity)
1. On a girl’s 10th birthday, her father started to deposit P5,000 quarterly at the end of
each term in a fund that pays 1% compounded monthly. How much will be in the
fund on his daughter’s 17th birthday?
(Possible Answer: P144, 832.94) Use j = 0.002502, n = 28
2. Find the present value and amount of an ordinary annuity of P5,000 payable semi-
annually for 10 years if money is worth 9% compounded annually.
(Possible Answers: P65, 589.25 and P155,274.64)

(Deferred Annuity)

3. Mr. and Mrs. Mercado decided to sell their house and to deposit the fund in a bank.
After computing the interest, they found out that they may withdraw P350,000
yearly for 4 years starting at the end of 7 years when their child will be in college.
How much is the fund deposited if the interest rate is 3% converted annually?
(Possible Answer: P1, 089, 533.99)