1. It is an annuity that does not begin until a given time interval has passed. A Simple Annuity C. General Annuity B. Deferred Annuity D. Contingent Annuity 2. A person or an entity that gives money or allocates capital with the expectation of receiving financial returns A Entrepreneur B. Politician C. Stockbroker D. Investor 3. It is used to describe the ownership certificates of any company and known as shares and equity. A bond B. stockbroker C. stock D. commission 4. A credit card company offers a deferred payment option for the purchase of any appliance. Rose plans to buy a smart television set with monthly payment of P4,000.00 for two years. The payment will start at the end of 3 months. If it is 10% compounded monthly, what is the period of deferral? A 1 B. 2 C. 3 D. 4 5. What is the present value in problem number 4? A P85,296.32 B.P85,296.53 C P85,296,31 D. P85,296 B. Solve the given problem below. Show your solution. (5points) A car is to be purchased in monthly payments of P17,000.00 for 4 years starting at the end of 4 months. How much is the cash value of the car if the interest rate used is 12% converted monthly?
Answer:
1.A
2. D
3. C
4. D
5 .B
YUN LANG PO