Engineering Board Exam Reviewer · Annuity Due and Deferred Annuity · medium
A lease requires payments of P10,000 at the beginning of each month for 2 years. Find the present worth at 12% compounded monthly.
- P212,433.87
- P240,000
- P220,231.56
- P214,558.21
Answer
D. P214,558.21
Solution
Annuity due: PW=A(P/A,i,n)(1+i)=10,000(21.2434)(1.01)=P214,558.21.
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