Introduction to Annuity

Kristoff is investing for an educational plan for his son. He deposits every end of the month a regular payment of P5,000 with with an interest rate of 6% compounded monthly for 7 years.

What is the value of R?

• 6

• 0.06

• 7

• 5,000

Kurt invested on a housing plan account which he pays P10,000 at the end of each quarter with a monthly compound interest of 1.25% for 5 years. What type of annuity is Kurt investing in?

• General Annuity

• Simple Annuity

Lester makes a regular payment of P3,000 every 6 months for 10 years on an investment account with a compounding interest of 3% semi-annually.

what type of annuity is the account?

• General Annuity

• Simple Annuity

An account with a regular monthly payment of P14,000 has a monthly compounding interest of 5.13% for 10 years. What kind of annuity is the account?

• General Annuity

• Simple Annuity

If an simple annuity account has a regular payment of P6,000 with a quarterly compounding interest of 3%, how many times will you regularly pay it each year for 7 years?

• 1

• 2

• 4

• cannot be determined

A general annuity account is to be paid regularly of P3,000 with a compounding interest of 1.56% semi-annually for 7 years. How many times will you pay the account each year?

• 1

• 2

• 14

• cannot be determined

An account with a regular monthly payment of P9,000 has a compound interest of 4.56% for 10 years. How many times will the interest compound in one year if it is an ordinary annuity?

• 1

• 4

• 12

• cannot be determined

It is the type of annuity in which payments are made at the beginning of each payment interval.

• Ordinary Annuity

• Annuity Certain

• Annuity Due

• Contingent Annuity

Drake borrowed P12,000 from Kent and promised to pay him P1,000 every month for one year with a compounding interest of 0.5% monthly. What type of annuity is this?

• Ordinary Annuity

• Annuity Due

• Annuity Certain

• Contingent Annuity

Jake invested in a life insurance with regular payments of P2,000 monthly with a monthly compounding interest of 1.65% until he reaches 65 years old. What type of annuity is this?

• Ordinary Annuity

• Annuity Due

• Annuity Certain

• Contingent Annuity