What is the future value of an annuity

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Reference no: EM133633577

SIMPLE INTEREST 1. A person deposits P5,000 in a bank account which pays 6% simple interest per year. Find the value of his deposit after 4 years. 3. Wanda borrowed P3,000 from a lending corporation of 12% per year for a 2-year period on October 1, 2022. Payment of Interest is every end of year. How much interest does she have to pay the bank at the end of December 31, 2022? Compound interest 1. If P 200 is invested each month at 8.5% compounded monthly, what will the ?nal amount be in 4 years?

2. How much is the compound interest as computed in Question No. 1? Ordinary Annuity 1. I will invest P500 per quarter for my retirement at 7.3% compounding quarterly for 32 years. l have a choice of making that payment of P500 at the beginning or the end of the quarter (regular annuity or annuity due). In which account will I have more money and by how much? Which account will earn the most interest and by how much?

2. I am looking ahead to my retirement and want to be able to retire at 70 and hope to live to 95 and make P3200 a month from an account compounding monthly at 4.5%. I am currently 27 and I am going to deposit P1000 at the beginning of each quarter until I am 70 in an account that pays 8.5% and is compounded quarterly. Will I have enough to make it happen and by how much am | above or below? Annuity Due 1 . What is the future value (as of 10 years from now) of an annuity that makes 10 annual payments of P 5,000, if the interest rate is 7% per year compounded quarterly?

2. Mr. GO will receive P8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?

Reference no: EM133633577

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