Engineering Board Exam Reviewer · Ordinary Annuity · hard

Find the present value of an ordinary annuity of P800 quarterly for 5 years at 8% compounded quarterly.

  1. P13,081.15
  2. P12,800.00
  3. P13,500.00
  4. P12,000.00

Answer

A. P13,081.15

Solution

n=20, i=0.02. PV=800· 1-(1.02)-200.02 P13,081.15.

More Ordinary Annuity questions

  1. Find the number of years needed to accumulate P200,000 through an ordinary annuity of P20,000 per year at 6% annual interest.
  2. Find the ordinary annuity payment needed to pay off a P30,000 debt in 5 years at 9% annual interest.
  3. Find the future value of an ordinary annuity of P2,000 per year for 5 years at 8% annual interest.
  4. Find the present value of an ordinary annuity of P5,000 per year for 10 years at 6% annual interest.
  5. Find the periodic payment needed to accumulate P100,000 in 8 years, with an ordinary annuity earning 7% annually.
  6. A loan of P50,000 is to be repaid by equal annual payments over 6 years at 10% annual interest. Find the annual payment.
  7. Find the future value of an ordinary annuity of P1,000 monthly for 3 years at 12% compounded monthly.

All Ordinary Annuity questions