ACTIVITY 1: FUTURE AND PRESENT VALUE OF ANNUITY Instructions: Read and analyze each question carefully, answer the given real-life word problem. Show your solution based on the given below. Organize and label your work on your answer sheets. 1. Mr. Ribaya paid P200, 000 as downpayment for a car. The remaining amount is to be settled by paying P16, 200 at the end of each month for 5 years. If interest is 10.5% compounded monthly, what is the cash price of his car? 2. In order to save for her high school graduation, Marie decided to save P200 at the end of each month. If the bank pays 0.250% compounded monthly, how much will her money be at the end of 6 years? 3. Paolo borrowed P100, 000. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually? 4. Find the future value of an ordinary annuity with a regular payment of P1,000 at 5% compounded quarterly for 3 years. 5. Find the present value of an ordinary annuity with regular quarterly payments worth P1,000 at 3% annual interest rate compounded quarterly at the end of 4 years. ACTIVITY 1: DEFERRED ANNUITY Instructions: Read and analyze each question carefully, answer the given real-life word problem. Show your solution based on the given below. Organize and label your work on the space provided for. 1. Find the present value of a 2-year deferred annuity at 4% interest compounded quarterly with payments of P1,000 made every quarter for 3 years. 2. Find the present value of a 3-year deferred annuity with regular payments of P10,000 compounded annually at an interest rate of 3%. 3. Mariel purchased a smart television set through the credit cooperative of their company. The cooperative provides an option for a deferred payment. Mariel decided to pay after 2 months of purchase. Her monthly payment is computed as P3,800 payable in 12 months. How much is the cash value of the television set of the interest rate is 12% convertible monthly? 4. Melvin availed of a loan from a bank that gave him an option to pay P20,000 monthly for 2 years. The first payment is due after 4 months. How much is the present value of the loan if the interest rate is 10% converted monthly? 5. Quarterly payments of 300 for 9 years that will start 1 year from now, What is the period of deferral in the deferred annuity