1.) Mr. Roanito wants to put money in an account that pays 5% interest each year, compounded annually. How much must he deposit in the account today if his aim is to have 5,000 PHP in the account at the end of six years? 2.) If the rate of interest is 5.23 percent compounded weekly, calculate the Present Value of 534PHP that will be returned in fifteen years. 3.) Find the Present Value of a money flow that is 1000 PHP at the end of the first quarter but drops by 50% each quarter for the next 18 months at a 5% compounded monthly interest rate.
1.) Mr. Roanito wants to put money in an account that pays 5% interest each year, compounded annually. How much must he deposit in the account today if his aim is to have 5,000 PHP in the account at the end of six years? 2.) If the rate of interest is 5.23 percent compounded weekly, calculate the Present Value of 534PHP that will be returned in fifteen years. 3.) Find the Present Value of a money flow that is 1000 PHP at the end of the first quarter but drops by 50% each quarter for the next 18 months at a 5% compounded monthly interest rate.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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