What is the present value of a P90,000 annual annuity for 10 years with an additional P1,000,000 received at the end of the 10th year if the current level of interest rates is 8 per cent? a. P1.9M b. P1.363M c. P1.067M d. P1.167M

What is the present value of a P90,000 annual annuity for 10 years with an additional P1,000,000 received at the end of the 10th year if the current level of interest rates is 8 per cent? a. P1.9M b. P1.363M c. P1.067M d. P1.167M

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter27: Investment, The Capital Market, And The Wealth Of Nations

Section: Chapter Questions

Problem 9CQ

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Question

What is the present value of a P90,000 annual annuity for 10 years with an additional P1,000,000 received at the end of the 10th year if the current level of interest rates is 8 per cent?

a. P1.9M

b. P1.363M

c. P1.067M

d. P1.167M

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