Question

5.What is the regular 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? 6.What is the future value of the annuity if the quarterly payment is P500.00 with an interest rate of 2% compounded monthly and the total payments is 25? 7.What is the future value 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? 8.What is the regular payment of the annuity if one needs to pay monthly, the future value is P350,000.00 with an interest rate of 4% compounded semi-annually, and the total payment of 30?

Answer 1

5. FV =275000
Number of Peroods =20
Effective Semi Annual rate =(1+APR/4)^2-1 =(1+3%/4)^2-1 =1.505625%
The regular payments =FV/((1+r)^n-1)/r) =275000/((1+1.505625%)^20-1)/1.505625%)=11885.99

6. PMT =500
Number of Payments =25
effective quarterly rate =(1+APR/12)^4-1 =(1+2%/12)^4-1) =0.668335185956814%
The FV of Payments =PMT*((1+r)^n-1)/r =500*((1+0.668335185956814%)^25-1)/0.668335185956814%)=13555.81