a.) Present Value of all payments. (Answer: 108,138.03) b.) Equivalent semi-annual payments. (Answer: 10,627.783)

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
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A series of year and payments extending over eight years are as follows:

First Year : P11,085

Second Year: P23,819

Third Year: P30,911

Fourth-Eight Year: P40,000

Assuming money is worth 12.15% Compounded annually. Determine the ff:

a.) Present Value of all payments. (Answer: 108,138.03)

b.) Equivalent semi-annual payments. (Answer: 10,627.783)

 

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