1. How much would you have at the end of five years if you invested P50,00Q at 10.5% interestrate?a) P63,814.08b) P82,372.34c) P142,650.712. Discounting basically looks for which type of value?a) Present Valueb) Future Value3. The risk return trade-off can be summed up by which phrase?a) Time is goldb) No pain, No Gainc) A penny saved is a penny earned.4. Check if your answer is correct by calculating the FV of your answers in Item 2 and the interestearned.a) FV P1,000,000; Interest P393,000.11b) FV P1,000,000; Interest P390,000.11c) FV P1,000,000; Interest P394,000.115. If you want to have a million pesos in five years, how much should you deposit/invest right nowat a 10.5% interest rate?a) P350,506.50b) P783,526.17c) P606,999.89

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How much would you have at the end of five years if you invested P50,000 at 10.5% interest rate?

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

Problem 1PS

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Question

1. How much would you have at the end of five years if you invested P50,00Q at 10.5% interest
rate?
a) P63,814.08
b) P82,372.34
c) P142,650.71
2. Discounting basically looks for which type of value?
a) Present Value
b) Future Value
3. The risk return trade-off can be summed up by which phrase?
a) Time is gold
b) No pain, No Gain
c) A penny saved is a penny earned.
4. Check if your answer is correct by calculating the FV of your answers in Item 2 and the interest
earned.
a) FV P1,000,000; Interest P393,000.11
b) FV P1,000,000; Interest P390,000.11
c) FV P1,000,000; Interest P394,000.11
5. If you want to have a million pesos in five years, how much should you deposit/invest right now
at a 10.5% interest rate?
a) P350,506.50
b) P783,526.17
c) P606,999.89

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