Annuity

Find the present value of a deferred annuity of ₱1,000 every end of six months for 8 years that is deferred for 5 years if money is worth 10% compounded semi-annually.

Ivan is setting up a fund to help finance his son’s college education. He wants his son to be able to withdraw ₱40,000 at the beginning of every three months for 2 years starting after 6 years. If the fund can earn 8% compounded quarterly, what single amount contributed today will provide for the payments?

A credit card company offers a deferred payment option for purchasing equipment. The manager of a factory plans to buy a piece of machinery through monthly payments of ₱8,000 for one year, but the payments starts at the end of 3 months. How much is the cash price of the machinery if the interest is 8% compounded monthly?

•Find the present value of an annuity if the first monthly payment of ₱6,500 is made at the end of 4 years for 9 years. Money is worth 13.6% compounded monthly.

If money is worth 10% compounded semi-annually, find the present value of ₱12,500 annuity every 6 months, the first of which is due at the end of 2 years and the last is at the end of 7 years.

: If ₱2000 is invested at the end of every year at 8%  compounded semiannually, what will be the total value of the periodic investments after 20 years?

Find the present value of an annuity which pays ₱1,460 at the end of every 3 months for 6 years, if money is worth 9% compounded monthly?

French Fries Food Inc. wishes to accumulate ₱500,000 during the next 24 months in order to open a second location. What constant amount should it pay a money market savings account with an investment deals at the end of each month in order to attain its savings objectives. The planning assumption is that the account will earn 10% compounded semiannually.