Problem
Read and understand the questions carefully. Show your computation and draw the cash flow.
A. What ordinary annuity is required over 12 yrs to equate with a future amount of 12,000 pesos? Assume i=6% compounded semi annually?
B. What is the present worth of a 3 year paying 3000 pesos at the end of each year, with interest at 8% compounded annually?
C. What annuity due is required over 10yrs to equate to future amount of 20,000pesos. Assume i= 8%
D. Josel obtained a loan of 10,000 peso s at the rate of 6% compounded annually in order to repair his backyard. How much he pays monthly amortize the loan within a period of 10 yrs?
E. Jose who deposited a certain amount of money today is supposed to receive 30 annual payments of $5,000 each. However the annuity will start 4yrs from today and the applicable rate of interest is 5%. Calculate the amount of money deposited if the annuity payment is supposed to be made at the end of each year.