2. A person buys a piece of lot for P100000 down-payment and 10 deferred semi-annual payments of P8000 each, starting three years from now. What is the present value of the investments if the rate of interest is 12% compounded semi-annually?

2. A person buys a piece of lot for P100000 down-payment and 10 deferred semi-annual payments of P8000 each, starting three years from now. What is the present value of the investments if the rate of interest is 12% compounded semi-annually?

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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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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ENGINEERING ECONOMICS: ANNUITY. Show complete solution and INCLUDE CASH FLOW DIAGRAM. Write legibly

2. A person buys a piece of lot for P100000 down-payment and 10 deferred semi-annual payments
of P8000 each, starting three years from now. What is the present value of the investments if the
rate of interest is 12% compounded semi-annually?

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