7. Mr. Cruz wishes his daughter to receive P1, 000, 000 ten years from now. What amount should
he invest now if it will earn 10 % compounded annually during the first 5 years and 12 %
compounded semiannually during the next 5 years?
8. A person wishes to have P500, 000 in a certain fund at the end of 5 years. How much should the
person invest in a fund that will pay 8% compounded continuously?
9. A debt of P400, 000 with 10% compounded semi-annually is to be amortized by semi-annual
payments over the next 5 years and the first due in 6 months. Find the semi-annual payments.
10. What is the present worth of an annual payment of P5, 000 at the end of each year for 10 years
at 10 % compounded annually with the first payment at the end of five years?
11. Mr. David plans a deposit of P20, 000 at the end of each month for 5 years at 12% compounded
monthly. What is the amount that will be available in two years?
12. If money is worth 8% compounded quarterly, find the present value of 12 quarterly payments of
P1, 000 each. The first of which is due at the end of one year.
13. Mr. Mallari borrowed P200, 000. The terms of the loan are 10% interest for 10 years with
uniform payments. He just made his third annual payment. How much principal does he still
owe?
14. A person loans P500, 000 from a bank with an interest of 4% compounded annually. The person
agrees to amortize the obligation by paying 8 equal annual payments and the first is due at the
end of three years. Find the annual payments.
15. Mr. David deposited P15, 000 each year for 10 years, how much annuity can Mr. David get
annually from the bank every year for ten years starting one year after his last deposit. Rate of
interest is 8%.