Business Mathematics

A sequence of payments made at equal (fixed) intervals or periods of time

• Annuity

• Bond

• Stocks

• Income

An annuity where the payment interval is the same as the interest period

• Simple Annuity

• General Annuity

• Ordinary Annuity

• Annuity Certain

An annuity where the payment interval is NOT the same as the interest period

• Simple Annuity

• General Annuity

• Ordinary Annuity

• Annuity Certain

A type of annuity in which the payments are made at the end of each payment interval.

• Simple Annuity

• General Annuity

• Ordinary Annuity

• Annuity Certain

An annuity in which payments begin and end at definite times

• Simple Annuity

• Deferred Annuity

• Ordinary Annuity

• Annuity Certain

The buyer of the house and lot pay P200,000 cash and P10,000 every month for 20 years. If money is 9% compounded monthly, how much is the cash value of the lot?

• 1,311,449.54

• 1,411,449.54

• 1,511,449.54

• 1,211,449.54

A refrigerator is for sale at P17,999 in cash or on terms, P1,600 each month for the next 12 months. Money is 9% compounded monthly. Which is lower?

• Cash price

• The present value of the installment terms

In a general annuity, variable 'j' stands for?

• The regular payment

• the equivalent interest rate per payment interval converted from the interest rate per period.

• the interest rate per period

• the number of conversion periods in the deferral.

RCS Bank pays interest at the rate of 2% compounded quarterly. How much will Raphael have in the bank at the end of 5 years if he deposits P3,000 every month?

• P189,126.38

• P117,110.88

• P138,668.16

• P110,552.28

Ms. Laarni is a beneficiary of a P1,000,000 insurance policy. Instead of taking the money as lump sum, she opted to receive a monthly stipend over a period of 10 years. If the insurance policy pays an interest of 5% compounded annually, what will be her monthly stipend?

• P100,000

• P10,552.28

• P50,000

• P17,552.28