For 8 – 10. How long will a principal of P25,000 of Mark will earn an amount of P3,000 when invested at 3% compounded monthly? 8. What is rate of interest for each conversion period (j)? A. 0.0025 B. 0.0075 C. 0.015 D. 0.03 9. How many conversion periods will cover the investment (n)? A. 22.38 10. How long will he wait to achieve the amount he wanted (t)? A. 3 years and 9 months B. 3 years and 10 months B. 32.23 C. 45.39 D. 54.21 C. 9 years and 3 months D. 9 years and 10 months

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A: The tenure of the loan means the duration for which loan has been taken. If loan tenure is more than…

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A: Using excel PV function

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A: In this question, we are required to determine the present value of perpetuity.

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Q: I want to answer this question

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A: Rate of return: It implies to the rate that is often expected or charged by the investor from the…

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A: In this problem we have to calculate quarterly interest and periods and calculate future value…

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A: Simple interest is interest earned on the 'initial' principal amount invested at the simple interest…

Q: What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate…

A: The objective of this question is to calculate the present value of a future sum of money. In this…

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A: Interest is the cost of borrowing or lending the money.

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.