EQUIVALENT RATES What is the present worth of P3000 deposited quarterly for 5 years if the interest is 10% compounded monthly? Adding sensitivity to the analysis - the deposit is made quarterly and yet the interest is compounded monthly. First solve the equivalent rates following the period of annuity, which is quarterly.
EQUIVALENT RATES What is the present worth of P3000 deposited quarterly for 5 years if the interest is 10% compounded monthly? Adding sensitivity to the analysis - the deposit is made quarterly and yet the interest is compounded monthly. First solve the equivalent rates following the period of annuity, which is quarterly.
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.CT: Chapter Test
Problem 24CT: Show the sample space of the experiment: toss a fair coin three times.
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Transcribed Image Text:1. Compute for the future worth of the sample. If you are the one, will you decide the
same? Why
Transcribed Image Text:EQUIVALENT RATES
What is the present worth of P3000 deposited quarterly for 5 years if the
interest is 10% compounded monthly?
Adding sensitivity to the analysis - the deposit is made quarterly and yet the
interest is compounded monthly.
First solve the equivalent rates following the period of annuity, which is quarterly.
(1+ )* –1= (1-
+ " ·
10%) 12
r = 10.08%
hence - i = 2.52%
(1 +.0252)-(5+4)-
P = P3000
= P46,679.25
0252
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