2. Determine the present values if P5,000 is received in each of the following situation. A. 5% for ten years 7% for seven years 9% for four years. В. С.
2. Determine the present values if P5,000 is received in each of the following situation. A. 5% for ten years 7% for seven years 9% for four years. В. С.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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Question
please see attatched file
Expert Solution
Step 1
present value is the value of future cashflow discounted at the specified rate to today's date.
formula:
Where,
A= ANNUITY
r = rate of return
N = no of years
Step 2
A.
GIVEN,
A = P5000
r = 5%
n =10 years
applying the formula:
ANSWER: P38608.67
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