for academic purposes..

1. Annuity Due
a sequence of equal payments that
are made at the beginning of the
period...

2. the present value of an annuity
due, or its value on the day of the
first payments, is the sum of the
present values of the payments of
the payments.

4. Mr. Abad invested P1000 per
month for 5 years at 9%
compounded monthly. What is the
cash equivalent of the 5-year
deposits?

7. An investment of P200 is made at
the beginning of each year for 10
years. If interest is worth 6%, how
much will the investment be worth
at the end of 10 years?

8. :

9. The beneficiary of a life insurance
policy may take P10000 cash or 10
equal annual payments, the first
is to be made immediately. What
is the annual payments if money is
worth 6%?

10. ::

11. A student wants to have P2500 for a
trip after graduation 4 years from now.
How much she invest at the beginning
of each year starting now if she gets
5% compounded annually on her
savings?

13. If..
A=P10000
i=6%
R=P1281.7
n?
If..
S=P2500
i=.05
R=P552.41
n?

14. Rate of Annuity Due

17. Formula to be used:

18. Sample Problem:
Find the present value of a
deferred annuity of P500 a
year for ten years that is
deferred 5 years. Money is
worth 6%.

19. Sample Problem:
Find S(def):
If:
R=P300
d=6 years
n=8
i=7%