For Nos. 33-35. A CAD center just purchased a CAD software for P500,000 now and annual payments of P50,000 per year for 5 years. 33. If the rate of return is 20% per year, what is the present worth of the payments? A. P649,530.61 B. P667,607.75 C. P680,238.81 D. P689,539.34 34. If the CAD center has decided to defer the purchase 5 years from now, what is the present worth of the payments at a rate of return of 20% per year? A. P261,031.78 B. P313,238.14 C. P331,919.04 D. P381,706.90 35. In relation to the previous question, if the CAD center decides to open a bank account that will store equal annual payments for the deferred purchase, what is the value of the annual deposits that will cover the entire transaction at a rate of return of 20% per year? A. P52,011.12 B. P62,262.02 C. P66,135.55 D. P79,170.25
For Nos. 33-35. A CAD center just purchased a CAD software for P500,000 now and annual payments of P50,000 per year for 5 years. 33. If the rate of return is 20% per year, what is the present worth of the payments? A. P649,530.61 B. P667,607.75 C. P680,238.81 D. P689,539.34 34. If the CAD center has decided to defer the purchase 5 years from now, what is the present worth of the payments at a rate of return of 20% per year? A. P261,031.78 B. P313,238.14 C. P331,919.04 D. P381,706.90 35. In relation to the previous question, if the CAD center decides to open a bank account that will store equal annual payments for the deferred purchase, what is the value of the annual deposits that will cover the entire transaction at a rate of return of 20% per year? A. P52,011.12 B. P62,262.02 C. P66,135.55 D. P79,170.25
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
Problem 1PS
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Transcribed Image Text:For Nos. 33-35. A CAD center just purchased a CAD software for P500,000 now and annual payments of P50,000 per year for 5 years.
33. If the rate of return is 20% per year, what is the present worth of the payments?
A. P649,530.61
B. P667,607.75
C. P680,238.81
D. P689,539.34
34. If the CAD center has decided to defer the purchase 5 years from now, what is the present worth of the payments at a rate of return of 20% per year?
A. P261,031.78
B. P313,238.14
C. P331,919.04
D. P381,706.90
35. In relation to the previous question, if the CAD center decides to open a bank account that will store equal annual payments for the deferred purchase,
what is the value of the annual deposits that will cover the entire transaction at a rate of return of 20% per year?
A. P52,011.12
B. P62,262.02
C. P66,135.55
D. P79,170.25
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