Question

Instruction: Do not use any thousand separator. Use two decimal places You want to buy a mobile phone and you opted for the option in which you will be paying Php 3,000 per month for 2 years at 1% compounded monthly. How much is the cost of the phone now if you will be paying at the end of the seventh month? R 3000.00 1% compounded 12 0.08% 6 24 Full-Def Instruction: Do not use any thousand seperator. Use two decimal places If you save Php 500.00 at the end of each month for 2 years in a fund that gives 8% compounded monthly, how much is the amount or future value of your savings after the end of your term of a simple annuity? 1 R 500 8 .00% period 12 years) 2 n 24 Instruction: Do not use any thousand seperator. Use two decimal places If you save Php 500.00 at the end of each month for 2 years in a fund that gives 8% compounded semi-annually how much is the amount or future value of your savings after the end of your term of a general annuity? R 500 8.00% period 12 (years) 2 In 24

Answer 1

Answer of annuities is the cash vglye of an investment It shows what will bethe valye of 1nvestment Futyre Value in the futuve. with the Intevest rate n the fyture. If the payments are made gren qt the eni af ench month or pevlod, there will be an ordingry a0ny ty. It will be cgleyl qted qs follows CIti)" -1_ Fyture valye (AV) %3D where, Annyity pyment qt the end of each month Interest rate n ym ler of perlods. at the end of th month 1 Cost of mobile Griven, 3000 per month 7 months %3D (conpoynded montalg) : 0.00s = 6.08 % (I+ 0.0008 Fybre vqlue qt 7 3000 X O. 0008 month 3000 X 7.0168 : $ 21,050 .4° (est of mobile at the end of th month 15 $ 21050.40

2. Galcylgtion of fybne Vglue if annyity of $ 500 qt the end of 5h months with 8% compoyndel minthly. $ 500 qt the end of egch month 8/ /u months Given, 6.0066 / O.66% = : 24 montha 2 yers X 12 months [ 1)' (it o.006)*"-17 *[* Fytyve A X valye 500 X O.006C 500 X 25.933 12967.55 fybyve value of an anny ity at the end of 24 years is $ 129675sif compoyndel month ly. 3. Glulatjon of fybyve Valye if ayby of $ 500 with 8/ dt the end of Compognded semi-gnmally. each month =$ S00 qt Hhe ent of each month x 6 =$3000 fiven, 8% /2 0.04 %3D 2 yeNs X12 mgtl- 24 perjods onths (citi)"-)] Fybyve vglye CI+ 0.04. Bo00X 0.04 3000X 4.2469 $ 12739.392 Future Valye of an 10041by at the end of 2 years $12739. 39 if compornded semi- 490)|ly