4. Janjan has a promissory note due in 2 years, whose maturity is 100,000 pesos. a. Determine the present value if the rate of interest is 12% compounded semi-annually. b. Determine the effective rate of interest if it is compounded quarterly.

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4. Janjan has a promissory note due 2 years, whose maturity is 100,000 pesos.
a. Determine the present value if the rate of interest is 12% compounded semi-annually.
b. Determine the effective rate of interest if it is compounded quarterly.
Transcribed Image Text:4. Janjan has a promissory note due 2 years, whose maturity is 100,000 pesos. a. Determine the present value if the rate of interest is 12% compounded semi-annually. b. Determine the effective rate of interest if it is compounded quarterly.
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