18 Questions
Cash flow diagram is a graphical representation of cash flows drawn on a ______ scale
time
Cash flow diagram is analogous to a free body diagram for ______ problems
mechanics
Annuity is a series of equal payments occurring at equal intervals of ______
time
Annuities are established for the purpose of payment of debt by a series of equal payment at equal intervals of ______, also known as amortization
time
Annuities are established to accumulate a certain amount in the future by depositing equal amounts at equal ______ intervals
time
Annuities are established as a substitute periodic for a future lump sum ______
payment
An annuity is a series of equal payments occurring at equal intervals of ______
time
An ordinary annuity is one where the payments are made at the ______ of each period
end
The future worth of all periodic payments after the last payment is made is denoted by the letter ______
F
The interest rate per interest period is represented by the letter ______
i
The number of compounding per year is indicated by the letter ______
m
The time in years is denoted by the letter ______
t
A service car whose cash price was Php540,000.00 was bought with a down payment of Php162,000.00 and monthly of Php10,874.29 for 5 years. What was the rate of interest (r) if compounded monthly? The type of annuity in this scenario is a _______ annuity.
deferred
What annuity over a 10 year period at 8% is equivalent to a present worth of Php 100,000.00? The type of annuity in this scenario is a _______ annuity.
perpetuity
What is the accumulated value of a payment of Php 15,000.00 at the end of each year for 5 years with interest at 5% compounded quarterly? The type of annuity in this scenario is a _______ annuity.
ordinary
A parent on the day that a child is born wishes to determine what lump sum would have to be paid into an account bearing interest of 5% compounded annually in order to withdraw Php 20,000 each on the child’s 18th, 19th, 20th, and 21st birthdays. The type of annuity in this scenario is an _______ annuity.
ordinary
To accumulate a fund of Php80,000.00 at the end of 10 years, a man will make equal annual deposits in the fund at the beginning of each year. How much should he deposit if the fund is invested at 5% compounded annually? The type of annuity in this scenario is an _______ annuity.
ordinary
Find the present worth of perpetuity of Php 5200 payable monthly if the interest is 16% compounded monthly. The type of annuity in this scenario is a _______ annuity.
perpetual
Test your knowledge of financial mathematics with these practice questions covering topics such as interest rates, annuities, and accumulated values of payments over time. Practice calculating rates, present worth, and accumulated values to sharpen your financial skills.
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