A person buys a piece of lot for P100,197 down payment and 12 deferredsemi-annual payments of P 9,547 each,starting three years from now. Wwhat isthe present value of the investment ifthe rate of interest is 0.186compounded semi-annually?*Use four decimal places

Down payment (DP) = 100,197 Interest rate = 0.186 Semi annual interest rate (r) = 0.186/2 = 0.093…

A person buys a piece of lot for P 100,197 down payment and 12 deferred semi-annual payments of P 9,547 each, starting three years from now. What is the present value of the investment if the rate of interest is 0.186 compounded semi-annually?

A person buys a piece of lot for P 100,197 down payment and 12 deferred semi-annual payments of P 9,547 each, starting three years from now. What is the present value of the investment if the rate of interest is 0.186 compounded semi-annually?

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

A person buys a piece of lot for P
100,197 down payment and 12 deferred
semi-annual payments of P 9,547 each,
starting three years from now. Wwhat is
the present value of the investment if
the rate of interest is 0.186
compounded semi-annually?
*Use four decimal places

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