If money is worth 12% compounded quarterly, find the present value of 28 quarterly payment of PHP 18,000 each, the first of which is due at the beginning of the 4th year? O PHP 244,000.64 PHP 302,291.05 O PHP 109,425.14 O PHP 196,990.11 None of the above

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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.