Activity 6: Give Me the Future Value of the following General 3. Daily payments of P 20 for 30 days with interest rate of 20% compounded Thus, the interest rate per payment interval is 0.082432 or 8.24%. 1. Monthly payments of P 3,000 for 4 years with interest rate of 2. Quarterly payment of P 5,000 for 10 years with interest rate of 9% principal plus interest by paying P 38,973.76 each year for 3 years. How much money Annuities. compounded quarterly. compounded annually. annually. did he borrow if interest is 8% compounded quarterly? 0003 m = 4 R = 38,973.76 (4) = 0.08 n = 3 payments Given: Find: present value P Solution. The cash flow for this problem is shown in the diagram below. P=? R=3,8973.76. R=3,8973.76 R 3,8973.76 1 3 (1) Convert 8% compounded quarterly to its equivalent interest rate for each payment interval. F = F2 P (1 + ot = P (1 + (1 + : (1+ 31 (1 + 0.08. (1 + = (1+ 0.02)* = (1.02)* i(1) = 1.08243216-1 ¿(1) =j = 0.082432 = 8.24% 1 (2) Apply the formyla in com ing the

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