FDNBUSM 03 · Ordinary Annuities and Loan Balances
Conventions
Independent original practice cases. Amounts are Philippine pesos (PHP); enter numeric answers without currency symbols. Use the stated interest and payment timing. j is a nominal annual rate, i an effective payment-period rate, n the number of payments, and t years. Payment and compounding periods coincide unless stated otherwise. The factors are a(i,n) = [1 − (1 + i)^−n]/i and s(i,n) = [(1 + i)^n − 1]/i; at i = 0 both equal n. Keep full calculator precision and round money to 2 decimals only at the end; numeric money tolerance is PHP 0.02. Percentage answers are in percent, not decimal form. Report percentage and fractional-period/year answers to at least four decimal places unless exact; whole payment-count answers remain integers. Ignore taxes, fees and rounding of actual bank installments unless explicitly given. The Week 8 syllabus lists Annuities and Sinking Funds for Quiz 2; an exact calendar date was not verified.
Questions
01A fund receives PHP 3,200 at every quarter end for 5 years. Interest is 8% nominal compounded quarterly. Find FV immediately after payment 20.
02Equipment has PHP 15,000 down payment plus 18 month-end payments of PHP 4,500 at 1% monthly. Find its cash price.
03Complete the theoretical month-end installment for this loan. Retain full precision until the final answer.
| Item | Value |
|---|---|
| Principal (PHP) | 120000 |
| Effective monthly rate | 1% |
| Installments | 24 |
| First payment | End of month 1 |
| Monthly installment (PHP) | ? |