1. Mr.

Y buys a real estate and paid cash amounting to P200,000 and the balance to be paid at annual installment of P50,000 for 5 years. If the interest rate is 8% compounded annually, determine the cash price equivalent of the real estate. 2. Suppose you win a lottery that entitles you to receive $500 per month for the next 20 years, If money is worth 6% compounded annually, what is the present value of this annuity? 3. Which would you prefer assuming an interest rate of 9% compounded annually. a. To receive P500,000 now or b. To receive P30,000 every year for 20 years? 4. Which would you prefer assuming an interest of 9% compounded annually. a. To receive P30,000 every year for 2 years b. To receive P55,000 now 5. Mr. D estimates that he will receive P9,000 pension every month for the next 10 years. If the market rate is 4% compounded monthly, determine the value of the pension today. 6. Dee acquired a house. The agreed payment terms provide for a down payment of P200,000 and the balance to be paid at 4 quarterly payments of P30,000. If the interest rate agreed is 4% compounded quarterly, a)determine the present value of the annual installments; b) determine the cash price equivalent of the house. 7. If X expects a present value of P40,000 of an annuity investment to be held for 4 years, how much will he have to deposit monthly to equate the said amount now earning 5% interest compounded monthly for 4 years. 8. Manny pays P2,000 in a fund for every month-end earning interest of 5% compounded monthly. If the term is 4 years, determine the investments present value. 9. Find the quarterly payment of a 5% compounded quarterly investment if its present value amounts to P35,880. The investment will be held for 5 years. 10. Determine the present value of P3,000 invested compounded monthly if the investment will be held quarters. at 5% for 5

1. Mr. Y buys a real estate and paid cash amounting to P200,000 and the balance to be paid at annual installment of P50,000 for 5 years. If the interest rate is 8% compounded annually, determine the cash price equivalent of the real estate. 2. Suppose you win a lottery that entitles you to receive $500 per month for the next 20 years, If money is worth 6% compounded annually, what is the present value of this annuity? 3. Which would you prefer assuming an interest rate of 9% compounded annually. a. To receive P500,000 now or b. To receive P30,000 every year for 20 years? 4. Which would you prefer assuming an interest of 9% compounded annually. a. To receive P30,000 every year for 2 years b. To receive P55,000 now 5. Mr. D estimates that he will receive P9,000 pension every month for the next 10 years. If the market rate is 4% compounded monthly, determine the value of the pension today. 6. Dee acquired a house. The agreed payment terms provide for a down payment of P200,000 and the balance to be paid at 4 quarterly payments of P30,000. If the interest rate agreed is 4% compounded quarterly, a)determine the present value of the annual installments; b) determine the cash price equivalent of the house. 7. If X expects a present value of P40,000 of an annuity investment to be held for 4 years, how much will he have to deposit monthly to equate the said amount now earning 5% interest compounded monthly for 4 years. 8. Manny pays P2,000 in a fund for every month-end earning interest of 5% compounded monthly. If the term is 4 years, determine the investments present value. 9. Find the quarterly payment of a 5% compounded quarterly investment if its present value amounts to P35,880. The investment will be held for 5 years. 10. Determine the present value of P3,000 compounded monthly if the investment will quarters. invested be held at 5% for 5