Fill in the blanks

10. At the birth of a child, the father wants to deposit a

FV PV Pmt n d i
certain sum in a trust fund to provide his child P5,000
3,400 quarterly 10 3 12% every quarter for 4 years, starting on his 12th birthday.
10,000 annually 9 4 10% If the fund grows at the rate of 9% compounded
15,670 semi-annually 8 5 5% monthly, how much should the father deposit?
8,000 monthly 5 2 9%
75,000 annually 4 3 11% 11. What is the present value of a P7,600 perpetuity
payable at the beginning of each month if money is
worth 14% compounded quarterly?
1. What is the future value of 10 quarterly payments of
P100,000 each made at the end of each quarter when 12. What sum, when invested a 8.25% compounded
the first payment is made at the end of two semi- annually will provide payments of P14,000 at the end of
annually if money is worth 8%. each month forever?

2. Savannah purchased a MacBook for P80,000 on May 13, 13. A sequence of semi-annual payments will begin now
2009. She paid P10,000 cash and agreed to pay the and will continue forever. Find the size of the payments
balance plus interest at 9 ½ % compounded annually
if the present value of the perpetuity is P35,000 and
in 14 annual payments, with the first payment due on
money is worth 14% compounded quarterly.
May 13, 2012. What is the size of each payment?

3. If P20,000 semi-annual payments were made at the end

of 3 years for 15 times, what is the value today if the
interest rate is 10% compounded quarterly?

4. If money is worth 5 ½ % compounded annually, what

single payment now is equivalent to 45 monthly
payments of P35,000 each with the first payment due
in five years?

5. If you want to withdraw P10,000 annually at an interest

rate of 5% compounded monthly for an indefinite
period of time, how much should you deposit today?

6. At 2% interest per quarter, what will be the present

value of the simple perpetuity if payment of P3,500 is
made at the beginning of each year?

7. Find the present value of 10 quarterly payments of

P25,00 each made at the beginning of every quarter,
the first payment if made at the lapse of 1 year. Interest
rate is 6% per year.

8. If P500,000 is deposited today and you want to receive

a monthly return for an indefinite period of time, how
much should you withdraw every year if the interest
rate is 1% per year?

9. How much should be set aside today to provide annual

withdrawal income of P12,000 for 5 years if the first one
is to be made at the end of seven years and the
effective interest rate is 8% per month?