(Solved): Problem 1 For a uniform series of payments what is the value of 1. (F/A, 8%,6) if it is compoun ...

Problem 1 For a uniform series of payments what is the value of 1. (F/A, $$8\%,6)$$ if it is compounded quarterly 2. (P/A, 6\%,8) if it is compounded semi-annually. 3. (F/A, 8\%,4) if it is compounded continuously. Ans. $$\mathrm{1.30.42186}\mathrm{2.12.5611}\mathrm{3.4.528047}$$ Problem 2 In an ordinary annuity (uniform series of payments) if the nominal rate of interest is $$8\%$$ compounded quarterly for 6 years. 1. Compute the value of the capital recovery factor. 2. Compute the value of the sinking fund factor. 3. Compute the value of the present worth factor. $$\begin{array}{lll}\text{ Ans. }\mathrm{1.0.052871}& \mathrm{2.0.032871}& \mathrm{3.18.914}\end{array}$$ Problem 3 For some interest rate "i" and some number of interest periods " $$\mathrm{i}$$ " the uniform series capital recovery factor is 0.3091 and the sinking fund factor is 0.1941 . 1. Compute the interest rate. 2. If the interest rate $$\mathrm{i}=12\%$$ compounded annually, compute the capital recovery factor for a period $$n=5$$ years. 3. If the rate of interest $$\mathrm{i}=16\%$$ compounded quarterly what would be the sinking fund factor for a period of 6 years. $$\begin{array}{lll}\text{ Ans. }1.11.5\%& \mathrm{2.0.27741}& \text{ 3. }0.02559\end{array}$$ Problem 4 A businessman wishes to have an amount of P2769.84 after 5 years. He deposited P500 each year into a savings bank that pays a nominal interest per annum compounded continuously. 1. Compute the nominal rate of interest. 2. Compute the effective rate of interest. 3. Compute the sinking fund factor for this equal payment. Ans. $$1.5\%2.5.127\%\mathrm{3.0.180516}$$ Problem 5 A man deposits P500 at the end of each year and expected to have an amount of P2,769.84 at the end of 5 years. 1. What is the nominal rate of interest if it is compounded annually? 2. What is the nominal rate of interest if it is compounded continuously? 3. Compute the equivalent compound amount factor if it is compounded continuously Ans. $$1.5.127\%$$ $$2.5\%$$ 3. 5.3968