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  • Chapter Test - Annuities

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    Epay Castañares Lascuña
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    This document contains instructions to fill in blanks with terms related to annuities and solve problems involving annuity calculations. It asks the respondent to: 1. Fill in 5 blanks with terms like "annuity", "ordinary annuity", and "annuity due". 2. Solve 5 problems calculating things like the cash price of a car given down payment and monthly payments over 5 years at 10% interest. 3. Solve 5 additional problems calculating things like the present value of a loan with monthly payments of $5,500 for 2 years at 12% interest, with first payment after 3 months. It provides scoring rubrics for correctness of the solutions.

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    Business Mathematics

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    This document contains instructions to fill in blanks with terms related to annuities and solve problems involving annuity calculations. It asks the respondent to: 1. Fill in 5 blanks with terms like "annuity", "ordinary annuity", and "annuity due". 2. Solve 5 problems calculating things like the cash price of a car given down payment and monthly payments over 5 years at 10% interest. 3. Solve 5 additional problems calculating things like the present value of a loan with monthly payments of $5,500 for 2 years at 12% interest, with first payment after 3 months. It provides scoring rubrics for correctness of the solutions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    303 views2 pages

    Chapter Test - Annuities

    Uploaded by

    Epay Castañares Lascuña
    This document contains instructions to fill in blanks with terms related to annuities and solve problems involving annuity calculations. It asks the respondent to: 1. Fill in 5 blanks with terms like "annuity", "ordinary annuity", and "annuity due". 2. Solve 5 problems calculating things like the cash price of a car given down payment and monthly payments over 5 years at 10% interest. 3. Solve 5 additional problems calculating things like the present value of a loan with monthly payments of $5,500 for 2 years at 12% interest, with first payment after 3 months. It provides scoring rubrics for correctness of the solutions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Direction: Write your answers in a 1 whole

    sheet of paper.
    A. Fill in the Blanks. Fill in the blanks with the
    correct answers.
    1. A sequence of payments made at equal
    time periods is a/an ____________.
    2. A simple annuity in which the payments
    are made at the end of each period is a/an
    _________.
    3. An annuity where the payment interval is
    not the same as the interest period is a/an
    _______.
    4. An annuity where the payment interval is
    the same as the interest period is a/an
    _________.
    5. An annuity in which payments begin and
    end at definite times is a/an _____________.
    B. Problem Solving. Answer the following
    problems as follows. Indicate the given,
    unknown, your solution, and your final
    answer. Each problem is worth 5 points
    each. Round off your final answer for up to
    2 decimal places.
    6 – 10. Mr. Bautista bought a car and gave an
    initial payment of ₱180,000 as down
    payment. The remaining balance is to be
    settled by paying ₱18,000 at the end of
    each month for 5 years. If interest is 10%
    compounded monthly, what is the cash
    price of the car?
    11 – 15. Reggie availed of a deferred
    payment scheme from a bank that gave her
    an option to pay ₱5,500 monthly for 2
    years. The first payment is due after 3
    months. How much is the present value of
    the loan if the interest rate is 12%
    compounded monthly?
    Scoring Rubrics:
    5 points – Answer is correct without errors on
    the solution.
    4 points – Answer is correct with 2 – 3 errors
    in the solution.
    3 points – Answer is incorrect and solution
    has 2 – 3 errors.
    2 points – Answer and solution are incorrect.
    1 point – No solution.

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