(3) It is known that an investment of P5,000 will increase to P40,000 at the end of 30 years. Find the sum of the present values of three payments of P 100,000 each which will occur at the end of 20, 40, and 60 years. Find first 1 + i then v = (1 + i)t for t = 20, 40, 60.

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 1E: An annuity is a sum of money that is paid in regular equal payments. The __________ of an annuity is...
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(3) It is known that an investment of P5,000 will increase to P 40,000 at the end of 30 years. Find the
sum of the present values of three payments of P 100,000 each which will occur at the end of 20,
40, and 60 years. Find first 1 + i then v = (1 + i) for t = 20, 40, 60.
(4) The sum of the present value of 1 paid at the end of n periods and 1 paid at the end of 2n periods
is 1. Find (1 + i)2n. Hint: on +²n = 1. This quadratic equation in v".
Transcribed Image Text:(3) It is known that an investment of P5,000 will increase to P 40,000 at the end of 30 years. Find the sum of the present values of three payments of P 100,000 each which will occur at the end of 20, 40, and 60 years. Find first 1 + i then v = (1 + i) for t = 20, 40, 60. (4) The sum of the present value of 1 paid at the end of n periods and 1 paid at the end of 2n periods is 1. Find (1 + i)2n. Hint: on +²n = 1. This quadratic equation in v".
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