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Annuities and Present Worth

An annuity is a uniform series of equal payments made at equal time intervals.

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

Present Worth of Annual Savings

Find the present worth of Php 15,000 received every year for 5 years at 8% interest.

$$P=15000\left(\frac{1-(1.08)^{-5}}{0.08}\right)$$
$$P=15000(3.9927)=59,890.50$$

Final answer: Php 59,890.50.

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