25. At 5% annual interest, what is the difference in the present and future value of P100 paid at the end of each year for 10 years and P100 paid at the beginning of each year? Answer: P value difference = P88.61, F value difference = P62.89 %3D
25. At 5% annual interest, what is the difference in the present and future value of P100 paid at the end of each year for 10 years and P100 paid at the beginning of each year? Answer: P value difference = P88.61, F value difference = P62.89 %3D
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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I need your help tutor!
This is how you answer the problem
(a) Identify the Given and the Unknown or what is being asked in the problem
(b)Provide the formula to be used
(c)Plug in the given in the formula if there is a derivation of the formula please show it
(d)Box the final answer. however, the final answer is already included in the problem, what you need to do is to match your answer and the answer in the book. Because in the book they only provide the answer but not the solution.
PS: Do not give me a solution which is done in ms excel
Problem:
Transcribed Image Text:Q5. At 5% annual interest, what is the difference in the present and future value of P100 paid at the end
of each year for 10 years and P100 paid at the beginning of each year?
Answer: P value difference = P88.61, F value difference = P62.89
%3D
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