The present worth of several cash payments may be defined as the sum of the values of the future cash payments discounted at a given rate for the corresponding period to the present. Find the present value of the installment payments of ₱1,500 now, ₱3,200 at the end of the first year, ₱3,700 at the end of the second year, ₱4,300 at the end of the third year, and ₱5,000 at the end of the fourth year. Money is worth 13% compounded semi-annually.

The present worth of several cash payments may be defined as the sum of the values of the future cash payments discounted at a given rate for the corresponding period to the present. Find the present value of the installment payments of ₱1,500 now, ₱3,200 at the end of the first year, ₱3,700 at the end of the second year, ₱4,300 at the end of the third year, and ₱5,000 at the end of the fourth year. Money is worth 13% compounded semi-annually.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

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