1.

Annual maintenance cost for the machine is 1500 this year and estimated to
increase 10% each year. What is the percent worth of the maintenance cost
for 6 years if i= 8%?

2. An increasing annual uniform series begins at the end of second year and
ends after 15th year. What is the value of G that makes the gradient series
equivalent to a uniform flow of payments of 900 Php per year for 7 years at
12% per year compounded annually?

3. Deposits are made to an account as indicated below which bears interest at

the rate of 10% compounded annually. How much will there be in the account
the end of sixth year?
End of Year
1
2
3
4
5

Deposit
0
500
1000
1500
2500

4. Suppose a man receives an initial annual salary of $60 000 increasing at the
rate of $ 5000 a year. If money is worth 10%, determine his equivalent
uniform salary for the period of 8 years.

5. Lovely, a 3rd year student of Chemical Engineering Department with an age of

18 years old makes year end deposit of Php 500 for the first year, Php 550 on
the second year, Php 605 on the 3 rd year and so on, increasing the next
years deposit by 10% of the deposit by the preceding year until the end of
tenth year. Desiree makes equal year end deposits of 700 each year for 10
years. If interest on both funds is 12% compounded annually, who will be able
to save more at the end of 10 years?

6. On Domingos 23rd birthday you decide to invest $ 4,500 (10% of your annual
salary) in a mutual fund earning 7% per year. You will continue to make
annual deposits equal to 10% of your annual salary until you retire at age 62
(40 years after you started your job). You expect your salary to increase by an
average of 4% each year during this time. How much money will you have
accumulated in your mutual fund when you retire?

7. A loan was to be amortized by a group of four end year payments forming an

ascending arithmetic progression. The initial payment was to be 5000 and the
difference between successive payments was to be 400. But the loan was
renegotiated to provide for the payment of equal rather than uniformly
varying sums. If the interest rate of the loan was 15%, what was the annual
payment?

8. A contract has been signed to lease a building at 2k per year with annual
increase of 1500 for 8 years. Payments are to be made at the end of each
year, starting one year from now, the prevailing rate is 7%. What lump sum
paid today would be equivalent to 8-year lease plan?

9. Airplane ticket price will increase 8% in each of the next four years. The cost
at the end of the first year will be $180. How much should be put away now
to cover a students travel home at the end of each year for the next four
years? Assume 5%.

10.A graduating CE is going to make $35 000 per year with Granite Construction.
A total of 10% of the CE salary will be placed in the mutual fund of their
choice. The CE can count on a 3% salary increase with the standard of living
increases for the next 30 years of employment. If the CE is aggressive and
places their retirement in a stock index fund that will average 12% over the
course of their, what can the CE expect at retirement?