Answer no. 3Show solution decimal places. Use continuous decimal during computation for uniformity offinal answers.1. Assume that on January 1, 2020 Aldous invested Php 100,000 in a financingcompany. Aldous would like to find out what would be the worth of his Php100,000 after 5 years with an interest rate pegged at 8%.2. Assume that on March 1, 2020 Floryn Company is to make annual investment ofPhp 200,000 for four years. The interest for this investment was pegged at 9%.The investment is made every year end. What is the future value of this annuity?3. Pharsa wants to pay equal annual investment amounting to Php 200,000 for 3years. The prevailing interest rate for this investment is 10%. How much is thediscounted value of the three-year payments to be recognized by Pharsa if thefirst payment will be made at the start of the first year?4. Assume that Popol promised to pay Php 100,000 per year in perpetuity, howmuch is the PV of infinite Php 100,000 payments be worth if the interest rate is10%? 15%? 20%?

Name: Answer no. 3Show solution decimal places. Use continuous decimal durin
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Description: Answer no. 3Show solution decimal places. Use continuous decimal during computation for uniformity offinal answers.1. Assume that on January 1, 2020 Aldous invested Php 100,000 in a financingcompany. Aldous would like to find out what would be the wo

In the given question, a series of annual payment of PHP 200,000 are to be made for 3 years. The…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Answer no. 3

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decimal places. Use continuous decimal during computation for uniformity of
final answers.
1. Assume that on January 1, 2020 Aldous invested Php 100,000 in a financing
company. Aldous would like to find out what would be the worth of his Php
100,000 after 5 years with an interest rate pegged at 8%.
2. Assume that on March 1, 2020 Floryn Company is to make annual investment of
Php 200,000 for four years. The interest for this investment was pegged at 9%.
The investment is made every year end. What is the future value of this annuity?
3. Pharsa wants to pay equal annual investment amounting to Php 200,000 for 3
years. The prevailing interest rate for this investment is 10%. How much is the
discounted value of the three-year payments to be recognized by Pharsa if the
first payment will be made at the start of the first year?
4. Assume that Popol promised to pay Php 100,000 per year in perpetuity, how
much is the PV of infinite Php 100,000 payments be worth if the interest rate is
10%? 15%? 20%?

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