1(1+r)"3. Present Value: P = FV-or P = F(1+i) -na) Find the present value of P8,000 due in four years at 8% compoundedsemi-annuallyb) P22,500 is due in 6 years at 12% compounded annually. Determinethe present valuec)Find the present value of each of the following:aa. P28,300, 8% every 6 months for 5 yearsbb. P27,500, 12% monthly. Terms, 3 years and 7 monthscc. P83,900, 10% quarterly, Terms, 6 years and 9 monthsdd. P71,520, 7% semi-annual for 12 yearsee. 68,900, 6% annually for 15 years.

HONOR CODE: Since you have posted a question with multiple sub-parts, we will provide the solution…

(1+r)" or P = F(1+i) -n a) Find the present value of P8,000 due in four years at semi-annually b) P22,500 is due in 6 years at 12% compounded annua the present value c) Find the present value of each of the following: 3. Present Value: P = aa. P28,300, 8% every 6 months for 5 years bb. P27,500, 12% monthly. Terms, 3 years and cc P83 900 10% quarterly Terms 6 years and

(1+r)" or P = F(1+i) -n a) Find the present value of P8,000 due in four years at semi-annually b) P22,500 is due in 6 years at 12% compounded annua the present value c) Find the present value of each of the following: 3. Present Value: P = aa. P28,300, 8% every 6 months for 5 years bb. P27,500, 12% monthly. Terms, 3 years and cc P83 900 10% quarterly Terms 6 years and

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
(1+r)"
3. Present Value: P = FV-
or P = F(1+i) -n
a) Find the present value of P8,000 due in four years at 8% compounded
semi-annually
b) P22,500 is due in 6 years at 12% compounded annually. Determine
the present value
c)
Find the present value of each of the following:
aa. P28,300, 8% every 6 months for 5 years
bb. P27,500, 12% monthly. Terms, 3 years and 7 months
cc. P83,900, 10% quarterly, Terms, 6 years and 9 months
dd. P71,520, 7% semi-annual for 12 years
ee. 68,900, 6% annually for 15 years.

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