Find the Future value of installment payments of P5,000 now, P8,000 at the end of the 1 year , 3,000 at the end of the 3" year th and P5,000 at the end of 5" year at i = 10% compounded quarterly.

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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3) Find the Future value of installment payments of P5,000 now, P8,000 at the end of the 1" year , 3,000 at the end of the 3 year
th
and P5,000 at the end of 5" year at i = 10% compounded quarterly.
4)
Three building proposals are being considered by the owner, which proposal is more economical if money is worth 18% compounded semi-annually. (using Future as focal/reference
point)
a) A building to be constructed now costing P1.5M, or
b)
A smaller building costing P1M now, and an additional room costing P0.5M to be constructed after 5 years, or
c)
nd
A single story building costing P.8M now and 2 floor costing PO.7M to be constructed after 5 years
Transcribed Image Text:3) Find the Future value of installment payments of P5,000 now, P8,000 at the end of the 1" year , 3,000 at the end of the 3 year th and P5,000 at the end of 5" year at i = 10% compounded quarterly. 4) Three building proposals are being considered by the owner, which proposal is more economical if money is worth 18% compounded semi-annually. (using Future as focal/reference point) a) A building to be constructed now costing P1.5M, or b) A smaller building costing P1M now, and an additional room costing P0.5M to be constructed after 5 years, or c) nd A single story building costing P.8M now and 2 floor costing PO.7M to be constructed after 5 years
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