Homework ( Annuity Due) 1. Find the present value and amount of an annuity of P3,500 payable at the beginning of each 3 months whose term is 7 years and moneys worth is at 6.5% interest rate, compounded quarterly. 2. Russel owes Cathy a certain amount of money and promises to settle her obligation by paying P4,500 at the beginning of each 3 months for 4 years and 6 months with interest at 10% converted quarterly. Find how much the loan is. 3.Mrs. Coronacion wishes her son Dennis to receive a certain amount on his 19th birthday. To realize this, Mrs. Coronacion will invest P4,500 at the beginning of each year after Dennis turns 7. If money earns interest at 5% compounded annually, how much will Dennis receive at the age of 19? 4. Cely has been depositing P10,000 at the beginning of each month to a bank that pays 4% compounded monthly. How much is credited to her account (a) just after her 16th deposit is made, (b) at the end of 2 years and 6 months? 5. If P5,000 is placed in a fund at the beginning of each 3 months and the fund is invested at 5.75% compounded quarterly, when will the fund contain at least P150,000? 6. Catacotacos Corporation has bought a machinery worth P600,000 in installment with interest at 17.25% compounded semi-annually. The sale agreement requires Catacotacos Corp. for a sequence of P100,000 semi-annual payments, the first of which is due immediately. (a) How many full payments of P100,000 are required? (b) How much must be paid on the last payment date to settle the debt completely?