DIRECTIONS: Solve the following problems neatly and legibly. Draw the necessary cash flow diagrams. Box your final answer. PROBLEM 1: Determine the present worth of an annual payment of P 4500.00 : 1. If made at the beginning of the year for 12 years at 8% compounded annually. 2. If made at the end of each month for 5 years at 4% compounded monthly. 3. If 15 payments start at the end of year 4 at 6% compounded 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
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DIRECTIONS: Solve the following problems neatly and legibly. Draw the necessary cash flow diagrams. Box your final answer.

PROBLEM 1: Determine the present worth of an annual payment of P 4500.00 :
1. If made at the beginning of the year for 12 years at 8% compounded annually.
2. If made at the end of each month for 5 years at 4% compounded monthly.
3. If 15 payments start at the end of year 4 at 6% compounded annually

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