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P9,000 ea.
- It is the annuity where the payment started at the beginning of the annuity periods.
FINDING P WHEN A IS GIVEN
0 1 2 3 4 n-1 n
A A A A A A
P = A 1 (1 + i )
(n-1)
+
i
F = A ( 1 + i )
(n+1)
- 1 1
i
ANNUITY DUE
1
A man bought a car costing P 450,000 payable in 5 years at a rate of
24% compounded semi-annually in installment basis. If each semi-
annual payment is payable at the beginning of each period,
determine the amount of each payment?