IV. Direction: Find the number of deferred periods (d) for each situation. The payment period and deferred perlod should have the same unit (quarterly, monthly, annually, etc) Choose your answer from the box below 1. Annual payment of Php 8,000.00 for 10 years that will start 5 years from now. 2. Quarterly payment of Php 5,000.00 for 3 years that will start after 2 years. 3. Monthly payments of Php 2,000.00 for 5 years that will start 7 months from now, 4. Semi-annual payments of Php 60,000.00 for 3 years that will start after 5 years.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 12E
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plz solve the question IV with explanation and get upvotes
II. Direction: Choose your answer from the box on the right.
A. SIMPLE ORDINARY ANNUITY
1. Peter started to deposit Php 5,000.00 quarterly in a fund that pays 1% compounded quarterly. How much will in the fund
after 6 years?
a. The regular or periodic payment (R) is
b. The term (t) of annuity is
c. The rate (r) is
d. The periodic rate (1) is
e. The frequency (m) of conversion is
f. The total number of conversion (n) is
g. The Future Value (F) is
5,000.00
10 years
10%
0.0025
6 000.00
6 years
1%
0.25
12
24
Php 123, 514.09
30
Php 132, 514.09
2. A Php 50,000.00 loan is payable in 3 years. To repay the loan, the debtor must pay an amount every 6 months with an
interest rate of 6% compounded semi-annually. How much should he pay every 6 months?
a. The Future Value (F) is
b. The term (t) of annuity is
c. The rate (r) is
d. The periodic rate (1) is
e. The frequency (m) of conversion is
f. The total number of conversion (n) is
g. The regular or periodic payment (R) is
50,000.00
3 years
1%
0.03
2
18
60,000.00
6 months
6%
0.01
Php 2, 992.99
Php 9, 229.88
C. GENERAL ORDINARY ANNUITY
1. Teacher Cacai is saving Php 1 000 every month by depositing it in a bank that gives an interest of 6% compounded
quarterly. How much will she save in 15 years?
a. The regular or periodic payment (R) is
b. The term (t) of annuity is
c. The rate (r) is
d. The no. of months in a payment interval (p) is
e. The frequency (m) of conversion is
f. The total number of conversion (n) is
g. The Future Value (F) is
1,000.00
15 months
1%
1,500.00
15 years
6%
12
4
30
60
Php 290,082.42
Php 29,082.42
IV. Direction: Find the number of deferred periods (d) for each situation. The payment period and deferred perlod
should have the same unit (quarterly, monthly, annually, etc) Choose your answer from the box below
1. Annual payment of Php 8,000.00 for 10 years that will start 5 years from now.
2. Quarterly payment of Php 5,000.00 for 3 years that will start after 2 years.
3. Monthly payments of Php 2,000.00 for 5 years that will start 7 months from now,
4. Semi-annual payments of Php 60,000.00 for 3 years that will start after 5 years.
5 years
7 quarters
7 months
6 semi-annual periods 9 semi-annual periods
4 years
6 quarters
6 months
Transcribed Image Text:II. Direction: Choose your answer from the box on the right. A. SIMPLE ORDINARY ANNUITY 1. Peter started to deposit Php 5,000.00 quarterly in a fund that pays 1% compounded quarterly. How much will in the fund after 6 years? a. The regular or periodic payment (R) is b. The term (t) of annuity is c. The rate (r) is d. The periodic rate (1) is e. The frequency (m) of conversion is f. The total number of conversion (n) is g. The Future Value (F) is 5,000.00 10 years 10% 0.0025 6 000.00 6 years 1% 0.25 12 24 Php 123, 514.09 30 Php 132, 514.09 2. A Php 50,000.00 loan is payable in 3 years. To repay the loan, the debtor must pay an amount every 6 months with an interest rate of 6% compounded semi-annually. How much should he pay every 6 months? a. The Future Value (F) is b. The term (t) of annuity is c. The rate (r) is d. The periodic rate (1) is e. The frequency (m) of conversion is f. The total number of conversion (n) is g. The regular or periodic payment (R) is 50,000.00 3 years 1% 0.03 2 18 60,000.00 6 months 6% 0.01 Php 2, 992.99 Php 9, 229.88 C. GENERAL ORDINARY ANNUITY 1. Teacher Cacai is saving Php 1 000 every month by depositing it in a bank that gives an interest of 6% compounded quarterly. How much will she save in 15 years? a. The regular or periodic payment (R) is b. The term (t) of annuity is c. The rate (r) is d. The no. of months in a payment interval (p) is e. The frequency (m) of conversion is f. The total number of conversion (n) is g. The Future Value (F) is 1,000.00 15 months 1% 1,500.00 15 years 6% 12 4 30 60 Php 290,082.42 Php 29,082.42 IV. Direction: Find the number of deferred periods (d) for each situation. The payment period and deferred perlod should have the same unit (quarterly, monthly, annually, etc) Choose your answer from the box below 1. Annual payment of Php 8,000.00 for 10 years that will start 5 years from now. 2. Quarterly payment of Php 5,000.00 for 3 years that will start after 2 years. 3. Monthly payments of Php 2,000.00 for 5 years that will start 7 months from now, 4. Semi-annual payments of Php 60,000.00 for 3 years that will start after 5 years. 5 years 7 quarters 7 months 6 semi-annual periods 9 semi-annual periods 4 years 6 quarters 6 months
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