Post Test
In this section, post-test will measure your knowledge about the simple and general annuity.
This part is expected to answer the questions correctly based on an increase in your knowledge and
understanding about our lesson.
Answer the following problems.
1. Baninay started to deposit P5, 000 quarterly in a fund that pays 1%
compounded quarterly. How much will be in the fund after 6 years?
2. The buyer of a lot pays P50, 000 cash and P10, 000 every month for 10
years. If money is 8% compounded monthly, how much is the cash value
of the lot?
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? Find the
value of an ordinary annuity.
4. An appliance is for sale at either (a) P15, 999 cash or (b) on terms, P1,
499 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? Explain.