Answer to Question #320614 in Mechanical Engineering for Jhonny

Question #320614

4.) An engineer is entitled to receive P25,000 at the beginning of each year for 18 years. If the rate of

interest is 4% compounded annually.

1. What is the present value of this annuity at the time he is supposed to receive the first

payment?

2. What is the sum of this annuity at the end of the 18th year?

3. Find the difference between the sum of this annuity which is paid at the beginning of

each year and an annuity paid at the end of each year.


Ans. 1. P329,141.72 2. P666,780.73 3. P25,645.41


1
Expert's answer
2022-04-04T11:48:03-0400

Answer is given below


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