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Business Mathematics Practice Questions — Set 4

What is an ordinary annuity?

What is the future value of an ordinary annuity formula?

If you save ₱5,000 monthly for 5 years at 6% compounded monthly, what is the future value?

What is an annuity due?

What is the present value of an annuity used for?

If you receive ₱10,000 monthly for 10 years with 8% annual interest compounded monthly, what is the present value?

What is a perpetuity?

You deposit ₱3,000 at the end of each quarter for 8 years at 10% compounded quarterly. How many payments?

What is a sinking fund?

If SM wants ₱10,000,000 in 5 years for renovation, how much should they save monthly at 6% compounded monthly?