company. Aldous would like to find out what would be the worth of his Php 100,000 after 5 years with an interest rate pegged at 8%. 2. Assume that on March 1, 2020 Floryn Company is to make annual investment of Php 200,000 for four years. The interest for this investment was pegged at 9%. The investment is made every year end. What is the future value of this annuity? 3. Pharsa wants to pay equal annual investment amounting to Php 200,000 for 3 years. The prevailing interest rate for this investment is 10%. How much is the discounted value of the three-year payments to be recognized by Pharsa if the first payment will be made at the start of the first year? 4. Assume that Popol promised to pay Php 100,000 per year in perpetuity, how much is the PV of infinite Php 100,000 payments be worth if the interest rate is 10%? 15%? 20%?
company. Aldous would like to find out what would be the worth of his Php 100,000 after 5 years with an interest rate pegged at 8%. 2. Assume that on March 1, 2020 Floryn Company is to make annual investment of Php 200,000 for four years. The interest for this investment was pegged at 9%. The investment is made every year end. What is the future value of this annuity? 3. Pharsa wants to pay equal annual investment amounting to Php 200,000 for 3 years. The prevailing interest rate for this investment is 10%. How much is the discounted value of the three-year payments to be recognized by Pharsa if the first payment will be made at the start of the first year? 4. Assume that Popol promised to pay Php 100,000 per year in perpetuity, how much is the PV of infinite Php 100,000 payments be worth if the interest rate is 10%? 15%? 20%?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 13E
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