1. Find the present andfuture value of anordinary annuity ofPhp5,000 payablesemi-annually for 10years if money is worth6% compounded semi-annually.2. The buyer of a car ofa car pays Php169,000cash and Phpl2,000every month for 5years. If money is 10%compounded monthly,how much is the cashprice of the car?3. A high schoolstudent wouid like tosave Php50,000 for hisgraduation. How muchshould he deposit in asavings account everymonth for 5.5 years ifinterest is at 0.25%compounded monthly?

1) Annuity amount (A) = Php 5000 semiannually r = 6% per annum = 3% semiannually n = 10 years = 20…

Answered: 1. Find the present and future value of…

1. Find the present and future value of an ordinary annuity of Php5,000 payable semi-annually for 10 years if money is worth 6% compounded semi- annually.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Question

1. Find the present and
future value of an
ordinary annuity of
Php5,000 payable
semi-annually for 10
years if money is worth
6% compounded semi-
annually.
2. The buyer of a car of
a car pays Php169,000
cash and Phpl2,000
every month for 5
years. If money is 10%
compounded monthly,
how much is the cash
price of the car?
3. A high school
student wouid like to
save Php50,000 for his
graduation. How much
should he deposit in a
savings account every
month for 5.5 years if
interest is at 0.25%
compounded monthly?

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