a. At an effective rate of interest of 8% per annum, the present value of P 100,000 due in x is P65,322. Determine x. b. What deposit made today will provide for a payment of P 1,000 in 1 year and P 2,000 in 3 y if the effective rate of interest is 7.5%? Total PV-PV of 1,000 at time 1+PV of 2,000 at tim c. Ian will receive P 50,000 at the end of each year for the next 4 years. Using an effective am
a. At an effective rate of interest of 8% per annum, the present value of P 100,000 due in x is P65,322. Determine x. b. What deposit made today will provide for a payment of P 1,000 in 1 year and P 2,000 in 3 y if the effective rate of interest is 7.5%? Total PV-PV of 1,000 at time 1+PV of 2,000 at tim c. Ian will receive P 50,000 at the end of each year for the next 4 years. Using an effective am
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:(2) a. At an effective rate of interest of 8% per annum, the present value of P 100,000 due in x years
is P 65,322. Determine x.
b. What deposit made today will provide for a payment of P 1,000 in 1 year and P 2,000 in 3 years,
if the effective rate of interest is 7.5%? Total PV-PV of 1,000 at time 1 + PV of 2,000 at time 3.
c. Ian will receive P50,000 at the end of each year for the next 4 years. Using an effective annual
interest rate of 6%, find today's present value of all the amount Ian will receive.
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