3. If money is worth 10% compounded quarterly, which of the following obligations is more valuable? Use at the end of 9 years as comparison date. a. ₱ 300 000 due at the end of 9 years without interest; or b. ₱ 160 500 due at the end of 5 years with accumulated interest from today at the rate of 7% compounded semi-annually

Q: 12. If Php5,000 shall accumulate for 10 years at 8% compounded quarterly, find the compounded…

A: GIVEN ÷ Present Amount = Php 5000 Time period = 10 years Interest rate = 8% compounded quarterly…

Q: Assume that $1,000 is deposited today, two years from now, four years from now, six years from now,…

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: If money is worth 9% compounded annually, which of the following obligations is more valuable? Use…

A: The present value is the worth of amount that has to be received/paid in the future.

Q: a. Calculate the future sum of P5,000, given that it will be held in the bank five years at an…

A: Note 1)It is a case where no sub-part is specified to solve among the multiple sub-parts posted, so…

Q: 1. At a certain interest rate compounded semi-annually, P5,000 will amount to P20,000 after 10…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Find the compound interest and the amount if 25,000 pesos is invested for 2 years at 6% compounded…

A:

Q: (a) Given the effective rate of interest as 7.5%, calculate the present value which will provide…

A: Present value is the future value discounted using the interest rate and time period. Present value…

Q: If money is worth 12% compounded quarterly, find the present value of 28 quarterly payment of PHP…

A: Interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3% Number of quarterly payments (n) = 28…

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Annual withdrawal (P) = $ 1500 Number of annual withdrawal (n) = 25 First payment (t) = 5 years…

Q: Find the present value of 11,600 due at the end of 7 years and 6 months if money is worth 4 ½%…

A: Future value (FV) = 11,600 Period = 7.50 Years Period in semi annual (N) = 7.50*2 = 15 Annual…

Q: The present value of $75,000 to be received in two years, at 12% compounded annually, is _____…

A: Present Value: Present value is calculated with the consideration of time value of money. Present…

Q: If money is worth 12% effective, what equal payment (x) at the end of 2 years and 4 yrs will…

A: present value of the obligations = 3000/1.056  + 5000/1.0510 = 5308.21

Q: 1. What is the accumulated value of the Php 25 payment be made at the beginning of each of the next…

A: The same amount is being paid annually over three years; this is an annuity. To find the future…

Q: 1.If money is worth 5% compounded semi annually, find the present value of a sequence of 12 semi…

A: 1) Interest rate (r) = 5% per annum = 2.5% semiannually Each payment (P) = P 450 Total payments (n)…

Q: A loan of L is being amortized with payments at the end of each year for 10 years. If v = 22/30,…

A: Loan Repayment:  A lump-sum payment that is made in conjunction with a loan, mortgage, or commercial…

Q: at what interest rate will a principal of P9,500 accumulate to P15,000 in 2 years compounded…

A: Future value = Present value*(1+interest rate/k)^(n*k) where n = number of years = 2 k = compounding…

Q: A debt is amortized for 4 years by a series of payments that decreases annually by P 500, the first…

A: Time period = 4 years First payment of lease = P 5,000 Annual decrease = P500 Interest rate = 5%

Q: 4. Determine the present value on July 7 of Php 6 800 paid at the end of each subsequent calendar…

A: Quarterly payment (Q) = Php 6800 n = 7 years = 28 quarters r = 6% per annum = 1.5% per quarter

Q: What is the compound interest and accumulated value of: 30,000 principal , 7% rate that is…

A: Compound Interest is the interest that is calculated on the initial principal plus the accumulated…

Q: 2. Find the present value of P30,000 due at the end of 8 years and 2 months if money's worth 15%…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: What is the effective rate of interest

A: In this case first the quarterly interest rate would be calculated and from quarterly interest rate,…

Q: What is the present value of P2,500 semiannual payments received at the beginning of each period for…

A: Please refer to the image below

Q: Q) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 nvested…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: Php60000 was deposited annually at an interest of 24% compounded quarterly. About how many years…

A: Annual deposit (P) = Php 60000 Interest rate (APR) = 24% Number of compounding per year (m) = 4…

Q: 10.A debt of RM10,000 due in one year and another RM15,000 due in five years will be settled by…

A: Total payment at the focal date comprises of the sum of the present and future values of the given…

Q: 1. Determine present worth and the accumulated amount of an annuity consisting of 6 payments of…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: eries of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at an…

A: The given problem can be solved using PV function in excel. PV function computes present amount for…

Q: Directions: Solve the present value P, and amount F of the following ordinary annuities. Quarterly…

A: Present value = Pmt x [1 - (1 + r)-n]/r

Q: If Php 5,000 becomes Php 9,734 after 12 years, when invested at an unknown rate of interest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: The present value of $66,000 to be received in two years, at 12% compounded annually, is needed.…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: 7. An amount of 24,000php is borrowed for 15 years at a rate of 2%. Make an amortization schedule…

A: Using PMT function in excel  PMT (rate,nper,pv,[fv]) Amortization schedule

Q: What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500…

A: Given,  The future amount is P84,500 Rate is 20% Term is 3 years and 9 months

Q: a.) Present Value of all payments. (Answer: 108,138.03) b.) Equivalent semi-annual payments.…

A: Information Provided: Discount rate = 12.15% First year = 11,085 Second year = 23,819 Third year =…

Q: An amount of R30 0000 is deposited into an account now, at a rate of 3,9% pa. Three years from now…

A: Given: Deposit amount = 300000 Interest rate = 3.9% Additional amount = 170000 New interest rate =…

Q: Determine the value of A and B that will make the futureworth in year 8 equal to P100,000. Note: A…

A: Value of A = X Value of B = 2X CF1 to CF4 = X CF5 to CF8 = 2X r = 10% Future value in year = P…

Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…

A: Given: Interest rate = 12% Semi-annual payments = $1000 Number of years = 3 Number of payments = 3*2…

Q: 2. Determine the present value on july 7 Php 6 800 paid at the end of each subsequent calendar…

A: Note : dear student as per the Q&A guideline we are required to solve the first question only .…

Q: What is the present value of $9,500 payable at the end of 7 years? Use a nominal rate (monthly…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: 2. Find the compound interest and the compound amount due at the end of 20 years and 7 months if…

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…

A: The given problem can be solved using PV function in excel. PV function computes present amount for…

Q: 3. To discharge an obligation that pays Php 785 every quarter payable in 5 years, the money is worth…

A: The present value of an annuity is the current worth of a cash flow at a certain rate of interest…

Q: The present value of $40,000 to be received in two years, at 12% compounded annually, is Present…

A: According to the concept of present value the value of money decreases each year , thus the value of…

Q: The present value of $42,000 to be received in two years, at 12% compounded annually, is (rounded to…

A: Answer:- correct Option is c. $33,482.

Q: Answer the following questions and show your Solution.A-C. Find the present value of the following…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Fill in the table below when P= $9,000, S= $3,000 (at the end of four years), and i 12% per year.…

A: Here, P or Investment is $9,000 S or Salvage Value is $3,000  Time Period is 4 years MARR or i is…

Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: An annual payment of P14 000 is made with interest rate of 10% compounded quarterly for 16 years.…

A: The present worth concept determines the value of future cash flows. The future cash flows can be in…

Q: P200,000.00 was deposited for a period of 4 years and 6 months and bears an interest of P85,649.25.…

A: Deposit amount  (PV) = P 200,000 Period = 4.5 years Period in quarter (n) = 4.5*4 = 18 Interest…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.