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    Annuity, Gradient, Perpetuity

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    Jsbebe jskdbsj
    The document contains 10 math word problems related to calculating present and future values with compound interest. The problems cover topics like loans, annuities, perpetuities, and calculating installment payments. For each problem, multiple choice answers are provided but no step-by-step workings or explanations are shown.

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    Annuity, Gradient, Perpetuity

    Uploaded by

    Jsbebe jskdbsj
    1K views2 pages
    The document contains 10 math word problems related to calculating present and future values with compound interest. The problems cover topics like loans, annuities, perpetuities, and calculating installment payments. For each problem, multiple choice answers are provided but no step-by-step workings or explanations are shown.

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    Good for me students

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    Annuity,Gradient,Perpetuity

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    The document contains 10 math word problems related to calculating present and future values with compound interest. The problems cover topics like loans, annuities, perpetuities, and calculating installment payments. For each problem, multiple choice answers are provided but no step-by-step workings or explanations are shown.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    Annuity, Gradient, Perpetuity

    Uploaded by

    Jsbebe jskdbsj
    The document contains 10 math word problems related to calculating present and future values with compound interest. The problems cover topics like loans, annuities, perpetuities, and calculating installment payments. For each problem, multiple choice answers are provided but no step-by-step workings or explanations are shown.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    1.

    An employee borrowed P700, 000 with 12% interest compounded semi-annually


    promised to pay every 6 months for 8 years starting today. What amount should
    be pay semi-annually?
    a. P65,000 b. P63,029.5 c. P70,100.25 d. P50,123.65

    2. A machine needs P5, 000 semi-annually for its maintenance during its perpetual
    life. If effective interest is 16%, find the present worth of maintenance.
    a. P62,500 b. P65,200 c. P63,500 d. P65,300

    3. A farmer bought an equipment costing P12, 000. The equipment may be


    purchased by installment for 5 years at 8% compounded annually. Find the
    annual payments if all payments are made at the beginning of each year.
    a. P3,782.85 b. P4,745.45 c.P2,782.85 d. P1,232.78

    4. What is the present worth of a 4 year annuity paying P4, 000 at the end of each
    year, with interest at 10% compounded annually?
    a. P12,679.46 b. P15,607.86 c. P12,697.5 d. P16,679.5

    5. The maintenance cost of a machine this year is expected to be P5, 000. The cost
    will increase P1, 000 each year for the subsequent 4 years. The interest is 15%
    compounded annually. What is the approximate worth of maintenance for the
    machine over the full 5 years?
    a. P32,535.91 b. P22,535.91 c. P42,535.91 d. P52,535.91

    6. A machine needs P15, 000 annually for its maintenance during its perpetual life.
    Find the present amount of maintenance if the interest is 4%.
    a. P375, 000 b.P735, 000 c. P573, 000 d. P375, 000

    7. What is the effective interest rate per year of a machine having a present amount
    of P900, 000 with P890 amount of maintenance during its perpetual life.
    a. 0.08% b. 0.098% c. 0.06% d. 0.05%

    8. A car needs P5, 000 quarterly for its maintenance during its perpetual life. If the
    effective interest is 28%, find the present amount of maintenance.
    a. P26,000 b. P71,428.57 c. P56,123.78 d. P69,123.87

    9. A contractor bought a concrete mixer at P150,000 if paid in cash. The mixer may
    also be purchased by installment to be paid within 7 years. If money worth 9%.
    The amount of each annual payment, if all payments made at the beginning of
    each year, is?
    a. P27,342.73 b.P26,546.32 c. P66,123.78 d. P79,123.87

    10. The maintenance cost of a machine this year is expected to be P500. The cost
    will increase P150 each year for the subsequent 4 years. The interest is 8%
    compounded annually. What is the approximate worth of maintenance for the
    machine over the full 5 years?
    a. P6,000 b. P3,102.22 c. P5,123.78 d. P9,123.87

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