Determine the present worth of a geometric gradient series of Contract B at an interest rate of 8% per year and has a cost of Php 10,000 in year 1; costs will escalate at 6% per year for 11 years. O a. P 93296 O b. P 92926 O c. P 93000 O d. P92296

j.   Find the PV and the FV of an investment that makes the following end-of-year payments.  The              interest rate is 8%. Year 1 $100, Year 2 $200, Year 3 $400           Year   Payment       1   100       2   200       3   400                     Rate 8%                   To find the PV, use the NPV function: Pv= $581.59                   Year Payment x (1+ I)^(N- t) = FV 1 100         2 200         3 400

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An investment pays $1000 in two years and $3000 at the end of the fifth year. It is priced to yield an annual effective rate of 7.5%. Find the price, Macaulay duration, modified duration and convexitv Estimate the price if the interest rate changes to 7.4% using modified duration.