A person buys a piece of lot for P 100,000 down payment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investmentif the rate of interest is 12% compounded semi-annually? A. P 142,999.08 B. P 143,104.89 C. P 142,189.67 D. P 143,999.08

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A: Given that,  Nominal interest rate (i) = 7% or 0.07 compounded continuously.

Q: 18.b

A:

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Q: 7. A nominal interest rate of 12% per annum compounded monthly is equal to what nominal interest…

A: Effective interest rate = (1+rm)m - 1where r is interest rate and m is time period.

Q: 7. Calculate the effective annual interest rate of the following: a. 12% compounded annually b. 12%…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

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A:

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Q: Mr. Edwards borrowed P 200,000 and agrees to pay P X annually for 5 years at the rate of 6%…

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A: Option B is correct

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Q: 4. Calculate the present value of $8,000 duc in 4 years if interest is compounded annually at 3%.

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Q: Compute the effective annual interest rate in each of these situations: a. 9% nominal interest,…

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