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+ )*-1 r = 10.08% hence - i= 2.52% (1+.0252)-(5* .0252 P = P3000 P46,679.25 Student Assessment Question 1. Compute for the future worth of the sample. If you are the one, will you decide the same? Why

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+ )-1 r = 10.08% hence - i= 2.52% (1+.0252)-(5 .0252 P = P3000 P46,679.25 Student Assessment Question 1. Compute for the future worth of the sample. If you are the one, will you decide the same? Why

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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