Find the present value of an ordinary annuity

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1. Suppose you have P25,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. How much will you have when the CD matures?

a. 46,928.44

b. 45,712.18

c. 36,211.02

d. 20,135.25

2. What's the future value of P100,000 after 5 years if the appropriate interest rate is 6%, compounded semiannually?

a. 125,608.11

b. 143,391.64

c. 152,608.11

d. 134,391.64

3. What's the present value of P15,000 discounted back five years if the appropriate interest rate is 6%, compounded monthly?

a. 12,110.58

b. 11,120.58

c. 16,011.09

d. 12,001.85

4. Suppose P8,500 is invested at the end of each six months for three years and that 19% interest is paid compounded semi-annually. How much will be in the account after three years?

a. 64,670.29

b. 64,760.29

c. 46,928.44

d. 64,298.44

5. Find the present value of an ordinary annuity if its value at the end of three years is P65,000. Assume money is worth 8% compounded quarterly.

a. 56,252.17

b. 51,252.06

c. 52,525.06

d. 55,252.04

Reference no: EM132780676

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