11/11/24, 6:12 AM Long Quiz on Simple Annuity | Quizizz

Worksheets Name

Long Quiz on Simple Annuity

Class
Total questions: 50
Worksheet time: 25mins
Date
Instructor name: Herra Luna

1. 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?

Ans.

2. Suppose Mrs. Remoto would like to save P3,000 at the end of every month in a fund that gives 9%
compounded monthly. How much is the amount or future value of her savings after 6 months?

Ans.

3. 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?

Ans.

4. Suppose Mrs. Remoto would like to know the present value of her monthly deposit of P3,000, made at
the end of each month when interest is 9% compounded monthly. How much is the present value of her
savings at the end of 6 months?

Ans.

5. Kathrina wants to buy a lot which costs 1 million pesos. She plans to give a down payment of 20% of
the cost, and the rest will be paid by financing at annual interest rate of 12% for 10 years in equal
monthly installments? What will be the monthly payment made at the end of each payment interval??

Ans.

6. Shirl started to deposit ₱18,000 at the end of each semi-annual payment interval into a fund that pays
5% interest compounded semi-annually. How much will be in the fund after 10 years?

Ans.

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7. What is the monthly amortization on an automobile loan of ₱900,000, to be amortized over a 5-year
period at a rate of 9.5% compounded monthly, with payments made at the end of each month?

Ans.

8. A refrigerator is for sale at P17,999 in cash or on terms, P1,600 at the end of each month for the next 12
months. Money is 9% compounded monthly. Which is lower, the cash price or the present value of the
installment terms?

a) Buying the refrigerator in cash is lower than b) The discounted total of monthly payments,
paying it in installment term. calculated at 9% interest, comes out to be less
than P17,999.

c) The cash price and the present value of the d) The total cost of installment payments, when
installments match exactly when considering discounted, is much lower than the cash price
the interest over time. of P17,999.

9. Mr. Ribaya would like to save P500,000 for his son’s college education. How much should he deposit in
a savings account every end of 6 months for 12 years if interest is at 1% compounded semi-annually?

Ans.

10. Grace borrowed P150,000 payable in 2 years. To repay the loan, she must pay an amount every end
of the month with an interest rate of 6% compounded monthly. How much should he pay every month?

Ans.

11. The buyer of a house and lot pays P200,000 cash and P10,000 every end of the month for 20 years. If
money is 9% compounded monthly, how much is the cash value of the lot?

a) ₱1,111,449.54 b) ₱1,311,449.54

c) ₱2,600,000 d) ₱2,400,000

12. Aling Paring started to deposit P2,000 at the end of each quarter in a fund that pays 5.5%
compounded quarterly. How much will be in the fund after 6 years?

Ans.

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13. Paolo borrowed P 100 000. He agrees to pay the principal plus interest by paying an equal amount of
money at the end of each year for 3 years. What should be his annual payment if interest is 8%
compounded annually?

Ans.

14. Mr. Ribaya paid P200,000 as down payment 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?

a) ₱753,702.20 b) ₱987,098.38

c) ₱953,702.20 d) ₱1,172,000

15. Find the accumulated value of a series of periodic payments of ₱2 000 made at the beginning of every
two months for 10 years if the money is worth 6% compounded bimonthly.

Ans.

16. Find the present value of an annuity due whose quarterly deposit is ₱2 500 at 4% compounded
quarterly for 5.5 years.

Ans.

17. Mr. Mendoza plans to open an investment account. There are two banks he is considering. In Bank A,
he should deposit ₱4 000 at the end of every month, and it earns 3.7% interest compounded monthly.
In Bank B, he should deposit ₱12 000 at the end of every three months, and it earns 8% interest
compounded quarterly. How much will Bank A accumulate after 10 years?

Ans.

18. Mr. Mendoza plans to open an investment account. There are two banks he is considering. In Bank A,
he should deposit ₱4 000 at the end of every month, and it earns 3.7% interest compounded monthly.
In Bank B, he should deposit ₱12 000 at the end of every three months, and it earns 8% interest
compounded quarterly. How much will Bank B accumulate after 10 years?

Ans.

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19. Mr. Mendoza plans to open an investment account. There are two banks he is considering. In Bank A,
he should deposit ₱4 000 at the end of every month, and it earns 3.7% interest compounded monthly.
In Bank B, he should deposit ₱12 000 at the end of every three months, and it earns 8% interest
compounded quarterly. Which of the two options will accumulate more money after 10 years?

a) Bank A b) Bank B

20. Anna purchased a TV worth ₱60 000. She agreed to pay it via installment at the end of every month
for two years. The payment scheme charges 5% interest compounded monthly. How much is his
monthly payment?

Ans.

21. How much should be invested at the beginning of every three months at 4% compounded quarterly to
accumulate ₱50 000 after 5 years?

Ans.

22. Find the present value of a series of periodic payments of ₱2 000 made at the beginning of every
month for 4 years if the money is worth 6% compounded monthly.

Ans.

23. Find the present value of an ordinary annuity whose semiannual deposit is ₱6 000 at 5% compounded
semiannually for 5 years.

Ans.

24. A store advertises a motorcycle for P3,000 downpayment and P3,000 at the end of each month for 15
months. If the interest is 15% compounded monthly, what is the actual value of the motorcycle?

Ans.

25. Ken is paying P2,500 every end of 3 months for the amount he borrowed at an interest rate of 8%
compounded quarterly. How much did he borrow if he agreed that the loan will be paid in 2 years and 6
months?

Ans.

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26. Mrs. Mondragon bought a house that costs ₱1 200 000 for a 10% down payment. The remaining
balance will be paid via installment every end of the month for 7 years and charges 6% interest
compounded monthly. How much is her monthly payment?

a) ₱12,857.14 b) ₱14,285.71

c) ₱17,530.27 d) ₱15,777.24

27. Mr. Mendoza plans to invest in an educational plan for his son. There are two options. In Option A, he
should deposit ₱5 000 at the end of every two months, and it earns 4% interest compounded
bimonthly. In Option B, he should deposit ₱2 500 at the end of every month, and it earns 4.5% interest
compounded monthly. Which of the following is true after 12 years?

a) Option A would generate ₱456,897.89. b) Option A would generate ₱460 126.63.

c) Option B would generate ₱376.890.5 d) Both option would generate the same amount.

28. Mr. Mendoza plans to invest in an educational plan for his son. There are two options. In Option A, he
should deposit ₱5 000 at the end of every two months, and it earns 4% interest compounded
bimonthly. In Option B, he should deposit ₱2 500 at the end of every month, and it earns 4.5% interest
compounded monthly. Which of the following is true after 12 years?

a) Option A is a better choice. b) Option A would generate ₱480,789.

c) Option B would generate ₱576,908.89 d) Option B would generate ₱476 183.07.

29. Mr. Mendoza plans to invest in an educational plan for his son. There are two options. In Option A, he
should deposit ₱5 000 at the end of every two months, and it earns 4% interest compounded
bimonthly. In Option B, he should deposit ₱2 500 at the end of every month, and it earns 4.5% interest
compounded monthly. Which of the following is true after 12 years?

a) Option A is a better choice. b) Option B is a better choice.

c) Use the formula for PV of Ordinary Annuity to d) Both option would generate the same amount.
know which is better.

30. How much should be invested at the end of every six months at 3% compounded semiannually to
accumulate ₱80 000 after 7 years and 6 months?

a) ₱5,908.54 b) ₱4,795.55

c) ₱6,987.86 d) ₱7,348.26

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31. Find the present value of a series of periodic payments of ₱1 000 made at the beginning of every three
months for 11 years and nine months if the money is worth 4% compounded quarterly.

Ans.

32. Mr. Mendoza plans to open an investment account. There are two banks that he is considering. In
Bank A, he should deposit ₱6 000 at the beginning of every two months, and it earns 3.5% interest
compounded bimonthly. In Bank B, he should deposit ₱3 000 at the end of every month, and it earns
4% interest compounded monthly. How much would Bank A generate after 30 months?

Ans.

33. Mr. Mendoza plans to open an investment account. There are two banks that he is considering. In
Bank A, he should deposit ₱6 000 at the beginning of every two months, and it earns 3.5% interest
compounded bimonthly. In Bank B, he should deposit ₱3 000 at the end of every month, and it earns
4% interest compounded monthly. How much would Bank B generate after 30 months?

Ans.

34. Mr. Mendoza plans to open an investment account. There are two banks that he is considering. In
Bank A, he should deposit ₱6 000 at the beginning of every two months, and it earns 3.5% interest
compounded bimonthly. In Bank B, he should deposit ₱3 000 at the end of every month, and it earns
4% interest compounded monthly. Which of the following is true after 30 months?

a) Bank A would generate more amount than b) Bank B would generate more amount than
Bank B. Bank A.

c) Both would generate the same amount. d) Cannot determine which would generate more
amount.

35. Jimmy buys a car worth ₱900 000. He pays a down payment of ₱80 000 and agrees that the balance
will be paid within 5 years. If the payments are to be made at the end of each month and the interest is
12% compounded monthly, how much is each monthly payment?

a) ₱15,000 b) ₱3,596,403.07

c) ₱18 240.45 d) ₱20,020.00

36. How much should be invested at the end of every six months at 5% compounded semiannually to
accumulate ₱40 000 after 5 years?

Ans.

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37. Payments are made at the end of every three months for a loan that charges 3% interest compounded
quarterly.

a) Simple Annuity b) General Annuity

38. Deposits of ₱1 000 are made at the end of every three months to an account that earns 5% interest
compounded semiannually.

a) Simple Annuity b) General Annuity

39. Mr. Padilla pays at the end of every month for a loan that charges 6% interest compounded monthly.

a) Simple Annuity b) General Annuity

40. Ms. Sarmiento deposits ₱2 000 at the beginning of every month to her account that earns 4% interest
compounded semiannually.

a) Simple Annuity b) General Annuity

41. Payments are made at the end of every month for a loan that charges 3% interest compounded
quarterly.

a) Simple Annuity b) General Annuity

42. Deposits of ₱1 000 are made at the end of every two months to an account that earns 5% interest
compounded semiannually.

a) Simple Annuity b) General Annuity

43. Mr. Padilla pays at the end of every six months for a loan that charges 6% interest semiannually.

a) Simple Annuity b) General Annuity

44. Ms. Sarmiento deposits ₱2 000 at the beginning of every six months to her account that earns 4%
interest compounded semiannually.

a) Simple Annuity b) General Annuity

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45. Payments are made at the end of every two months for a loan that charges 3% interest compounded
quarterly.

a) Simple Annuity b) General Annuity

46. Deposits of ₱1 000 are made at the end of every six months to an account that earns 5% interest
compounded semiannually.

a) Simple Annuity b) General Annuity

47. Mr. Padilla pays at the end of every six months for a loan that charges 6% interest semiannually.

a) Simple Annuity b) General Annuity

48. Ms. Sarmiento deposits ₱2 000 at the beginning of every three months to her account that earns 4%
interest compounded semiannually.

a) Simple Annuity b) General Annuity

49. It is an annuity certain whose compounding period is the same as the payment interval.

a) Simple Annuity b) General Annuity

50. It is an annuity certain whose compounding period is not the same as the payment interval.

a) Simple Annuity b) General Annuity

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Answer Keys

1. 14,507.85 2. 18,340.89 3. 14,507.85

4. 17,536.79 5. 11,477.68 6. 459,803.84

7. 18,901.68 8. a) Buying the refrigerator in 9. 19,660.31

cash is lower than paying it
in installment term.

10. 6,648.09 11. b) ₱1,311,449.54 12. 56,413.75

13. 38,803.35 14. c) ₱953,702.20 15. 164,972.73

16. 49,642.46 17. 579,776.08 18. 724,823.80, 724,823.8

19. b) Bank B 20. 2,632.28 21. 2,248.28

22. 85,586.44 23. 52,512.38 24. 43,801.64

25. 22,456.46 26. d) ₱15,777.24 27. b) Option A would generate

₱460 126.63.

28. d) Option B would generate 29. b) Option B is a better 30. b) ₱4,795.55

₱476 183.07. choice.

31. 37,727.24 32. 94,316.53 33. 94,488.43

34. b) Bank B would generate 35. c) ₱18 240.45 36. 3,570.35

more amount than Bank A.

37. a) Simple Annuity 38. b) General Annuity 39. a) Simple Annuity

40. b) General Annuity 41. b) General Annuity 42. b) General Annuity

43. a) Simple Annuity 44. a) Simple Annuity 45. b) General Annuity

46. a) Simple Annuity 47. a) Simple Annuity 48. b) General Annuity

49. a) Simple Annuity 50. b) General Annuity

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