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4. Your father entrusts you with the funds for your college education. He gave you two options: a) receive the money now in the amount of P 200 000 or b) receive P 500 000 ten years from now. An available investment opportunity to you provides a 10% return. Which option would you prefer? Show your calculations and explanation. 5. Five years ago, Joe invested P 35 000 compounded semi-annually at 8%. How much is his money now?

4. Your father entrusts you with the funds for your college education. He gave you two options: a) receive the money now in the amount of P 200 000 or b) receive P 500 000 ten years from now. An available investment opportunity to you provides a 10% return. Which option would you prefer? Show your calculations and explanation. 5. Five years ago, Joe invested P 35 000 compounded semi-annually at 8%. How much is his money now?

Essentials Of Investments
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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Please answer subpart 4 and 5 ONLY.
Solve the following: 1. What is the present worth of P 5 000 for 2 years at 12% compounded quarterly? 2.How much should be deposited now at 10% compounded monthly to have P 10 000 in 4 years? 3. Mr. Malakas deposited P 5 000 on the day his son was born. If the money is worth 12% compounded quarterly, how much money will his son have on his 21* birthday? 4. Your father entrusts you with the funds for your college education. He gave you two options: a) receive the money now in the amount of P 20o 000 or b) receive P 500 000 ten years from now. An available investment opportunity to you provides a 10% return. Which option would you prefer? Show your calculations and explanation. 5. Five years ago, Joe invested P 35 000 compounded semi-annually at 8%. How much is his money now?
Transcribed Image Text:Solve the following: 1. What is the present worth of P 5 000 for 2 years at 12% compounded quarterly? 2.How much should be deposited now at 10% compounded monthly to have P 10 000 in 4 years? 3. Mr. Malakas deposited P 5 000 on the day his son was born. If the money is worth 12% compounded quarterly, how much money will his son have on his 21* birthday? 4. Your father entrusts you with the funds for your college education. He gave you two options: a) receive the money now in the amount of P 20o 000 or b) receive P 500 000 ten years from now. An available investment opportunity to you provides a 10% return. Which option would you prefer? Show your calculations and explanation. 5. Five years ago, Joe invested P 35 000 compounded semi-annually at 8%. How much is his money now?
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