convert each general annuity below to its equivalent simple annuity. Show your solution to support your answers.

1. PHP3,000 due at the end of 12 months at 6% compounded semi-annually

2. PHP7,900 made every three months at 6.75% converted bimonthly

SOLVE THE FOLLOWING PROBLEMS AND SHOW YOUR SOLUTIONS

1. If the money is worth 5% compounded quarterly, find the present value of an annuity PHP 6,000 payable at the end of every six months for 2 years.

2. Mr.Shein Costelo purchased on credit a popcorn maker worth PHP 15,000 payable every end of two months for 1 year and 6 months. If the money is worth 4% compounded bimonthly, find the periodic payment to settle the debt.

I. Escalate Your Skill Solve the following problems. Show your solution on a separate sheet to support your answers.

1. The cost of the Optima car 3 years from now will be PHP 700,000. How much should Atty. Vomer Jubilag deposit every end of two months for 4 years to purchase the Optima car if the money earns 5.7% compounded quarterly?

2. A debt of PHP850,000 with an interest of 7.8% compounded semi-annually will be settled by making equal periodic payments at the end of every month for 5.5 years. How much is the periodic payment?

3. Prof. Christopher Fruto made a 15% down payment for a house and lot worth 3.5 million pesos. The balance is payable at the end of every two months for 7 years with 2.6% interest compounded monthly. Find the amount of the bimonthly payment.