Question

1. What is the future value of the annuity if one needs to pay annually, the present value is P68,000.00 with an interest rate of 5% compounded quarterly, and the total payment of 11? 2.What is the regular payment of the annuity if one needs to pay quarterly, the present value is P125,000.00 with an interest rate of 6% compounded monthly, and the total payment of 25? 3.What is the regular payment of the annuity if one needs to pay annually, the present value is P68,000.00 with an interest rate of 5% compounded quarterly, and the total payment of 11? 4.What is the present payment of the annuity if one needs to pay semi-annually, the future value is P275,000.00 with an interest rate of 3% compounded quarterly, and the total payment of 20?

Answer 1

1

EAR = [(1 +stated rate/no. of compounding periods) ^no. of compounding periods - 1]* 100

? = ((1+5/(4*100))^4-1)*100

Effective Annual Rate% = 5.0945

PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]

C = Cash flow per period

i = interest rate

n = number of payments

68000= Cash Flow*((1-(1+ 5.0945/100)^-11)/(5.0945/100))

Cash Flow = 8227.12

FVOrdinary Annuity = C*(((1 + i )^n -1)/i)

C = Cash flow per period

i = interest rate

n = number of payments

FV= 8227.12*(((1+ 5.0945/100)^11-1)/(5.0945/100))

FV = 117459.62

Please ask remaining parts seperately, questions are unrelated