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The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment interval = 1 month %3D = 18% compounded monthly = 15 years Interest rate Terms %3D 1. Find the present worth paid of all the payments if it is paid at the end of each month. 2. Find the difference between the sums of an annuity due and an ordinary annuity on these payments. 3. Find the difference between the present values of an annuity due and an ordinary annuity based on these payments. Ans. 1. P1,214,911.246 2. P271,687.35 3. P18,628.67

The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment interval = 1 month %3D = 18% compounded monthly = 15 years Interest rate Terms %3D 1. Find the present worth paid of all the payments if it is paid at the end of each month. 2. Find the difference between the sums of an annuity due and an ordinary annuity on these payments. 3. Find the difference between the present values of an annuity due and an ordinary annuity based on these payments. Ans. 1. P1,214,911.246 2. P271,687.35 3. P18,628.67

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
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The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment interval = 1 month Interest rate = 18% compounded monthly 15 years Terms 1. Find the present worth paid of all the payments if it is paid at the end of each month. 2. Find the difference between the sums of an annuity due and an ordinary annuity on these payments. 3. Find the difference between the present values of an annuity due and an ordinary annuity based on these payments. Ans. 1. P1,214,911.246 2. P271,687.35 3. P18,628.67
Transcribed Image Text:The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment interval = 1 month Interest rate = 18% compounded monthly 15 years Terms 1. Find the present worth paid of all the payments if it is paid at the end of each month. 2. Find the difference between the sums of an annuity due and an ordinary annuity on these payments. 3. Find the difference between the present values of an annuity due and an ordinary annuity based on these payments. Ans. 1. P1,214,911.246 2. P271,687.35 3. P18,628.67
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