Engineering Board Exam Reviewer · Ordinary Annuity · hard
Find the number of years needed to accumulate P200,000 through an ordinary annuity of P20,000 per year at 6% annual interest.
- ≈8.07 years
- ≈7.50 years
- ≈10.00 years
- ≈9.00 years
Answer
A. ≈8.07 years
Solution
200000=20000·(1.06)n-1/0.06 (1.06)n=1.6 n= 1.6/ 1.06 8.07 years.
More Ordinary Annuity questions
- Find the ordinary annuity payment needed to pay off a P30,000 debt in 5 years at 9% annual interest.
- Find the future value of an ordinary annuity of P2,000 per year for 5 years at 8% annual interest.
- Find the present value of an ordinary annuity of P5,000 per year for 10 years at 6% annual interest.
- Find the periodic payment needed to accumulate P100,000 in 8 years, with an ordinary annuity earning 7% annually.
- A loan of P50,000 is to be repaid by equal annual payments over 6 years at 10% annual interest. Find the annual payment.
- Find the future value of an ordinary annuity of P1,000 monthly for 3 years at 12% compounded monthly.
- Find the present value of an ordinary annuity of P800 quarterly for 5 years at 8% compounded quarterly.