General Mathematics: Page 4 of 4 Name: For 34 - 35: An annuity contract provides for the payment of P2,200 at the end of every month for 10 years. Money is worth 7% compounded semi-annually. _34. What is the conversion period? A m=1 B. m=2 C. m=4 D. m=6 35. What is the amount of the annuity at the Sol'n: end of 10 years? A. P3 838 328.45 C. P380 786.58 B. P3 670 994.35 D. P378 698.24 For 36 - 40: Albert borrowed P180 000 to be repaid with equal quarterly payments for 2 years with an interest rate of 9% compounded quarterly. As a collateral, he offered his used car with an appraised value of P250 000 which the lender accepted. Given the first five rows of the amortization table of the loan answer the questions that follow. Period Regular Payment Interest Component of Principal Component of Loan Balance Payment Payment 180 000.00 1 20 301.78 4 050.00 16 251.78 163 748.22 2 20 301.78 3 684.33 16 617,44 147 130.78 3 20 301.78 3 310.44 16 991.34 130 139.44 4 20 301.78 2 928.14 17 373.64 112 765.79 WNO D. 12 _36. How many payments are needed to discharge the loan? A. 2.5 B.5 C. 10 37. What is the loan-to-collateral ratio? A. 9% B. 25% C. 67% 38. How much goes to pay the principal on the 3rd payment? A. P16 251.78 B. P16 617.44 C. P16 991.34 D. 72% D. P17 373.64 Sol'n: 39. How much goes to pay the interest on the 5th payment? A. 253.72 C. 281.96 B. 272.63 D. 292.81 Sol'n: 40. How much is the remaining liability after the 6th payment? A. P9 500.13 C.P7 976.51 B. P9 421.07 D. P7 683.70 _41. What is the purchase price of a bond worth P150 000 with a coupon rate of 7% payable annually for 15 years? Assume that the market rate is 3%. Solin: A.P96 279.29 C. P208 220.71 B. P125 348.32 D. P221 627.61 42. Which of the two companies gives a better investment company A with a current market value of P3.55 and P0.72 dividend or company B Sol'n: with a current market value of P53.20 and a dividend of P7.327 A. company A C. both A and B B. company B D. none of them