CE Board Exam Randomizer

An ordinary annuity has equal payments made at the end of each payment period.

$$P=A\left(\frac{(1+i)^n-1}{(1+i)^n i}\right)$$

$$F=A\left(\frac{(1+i)^n-1}{i}\right)$$

A man deposited P50,000 in a retirement plan paying 9% compounded annually. What maximum amount can he withdraw at the end of each year for 12 years?

$$A=P(A/P,9\%,12)=50000(0.13965)=6,982.50$$

Final answer: P6,982.50 per year.

An office is expected to have positive cash flow of $250,000 per year for 25 years. At 12%, what is the equivalent present worth?

$$P=250000(P/A,12\%,25)=1,961,000$$

Final answer: $1,961,000.

A mine yields annual net income of P80,000 for 15 years. If MARR is 15%, what is the maximum bid?

$$P=80000(P/A,15\%,15)=467,789.61$$

Final answer: P467,789.61.

An engineer borrows P60,000 to be repaid monthly over 30 years at 9.5% nominal compounded monthly. Find the monthly payment.

$$i=0.095/12=0.00792, \quad n=360$$

$$A=60000(A/P,0.792\%,360)=504.69$$

Final answer: P504.69 per month.

A fixed sum is deposited at the end of each year for 20 years. At 6% compounded annually, find the annual deposit needed to accumulate $50,000.

$$A=F(A/F,6\%,20)=50000\left(\frac{0.06}{(1.06)^{20}-1}\right)=1,359$$

Final answer: $1,359 per year.

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