A. If money is worth 4% compounded monthly, what payment at the end of each quarter will replace payments of P500.00 monthly? B. What is the present worth of a P1,000.00 annuity over a 10 year period, if interest rate is 8%?

A. If money is worth 4% compounded monthly, what payment at the end of each quarter will replace payments of P500.00 monthly? B. What is the present worth of a P1,000.00 annuity over a 10 year period, if interest rate is 8%?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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SOLVE AND DRAW THE CASHFLOW DIAGRAM.

A. If money is worth 4% compounded monthly, what payment at the end of each quarter will replace payments of P500.00 monthly?

B. What is the present worth of a P1,000.00 annuity over a 10 year period, if interest rate is 8%?

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