Hi! The previous tutor answered this question already. I am just confused about the number of days in a year. The tutor uses 365 days, isn't 360 days? Since the question doesn't state any exact value, but only it assumes so I think it is 360 days, right?If the tutor's answer is correct, please enlighten and describe further why is it 365 days and not 360 days.This is the question: Find the present value on Oct. 9, 2020, if the amount on February 4, 2021, is Php. 4,600 with a discount rate of 3 4/5 % Period from Oct 9,2020 to Feb 4,2021 = 118 DaysDays in a year = 365Discount rate = 3 4/5% = 3.8%Discount rate for the period = 0.038* (118/365)= 0.0122849315068493 or 1.22849315068493%Future value = Php. 4,600Step 2 - Present valueAs per formulaPresent value = Future value/(1+Interest rate for the period)= 4600/(1+0.0122849315068493)= 4600/1.0122849315068493= 4544.17511989694ThereforePresent value =Php. 4544.17511989694

Tutors answer is absolutely correct. As there are 12 months in a year and out of which 7 months have…

Answered: Hi! The previous tutor answered this…

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Hi! The previous tutor answered this question already. I am just confused about the number of days in a year. The tutor uses 365 days, isn't 360 days? Since the question doesn't state any exact value, but only it assumes so I think it is 360 days, right?

If the tutor's answer is correct, please enlighten and describe further why is it 365 days and not 360 days.

This is the question:

Find the present value on Oct. 9, 2020, if the amount on February 4, 2021, is Php. 4,600 with a discount rate of 3 4/5 %

Period from Oct 9,2020 to Feb 4,2021 = 118 Days
Days in a year = 365
Discount rate = 3 4/5% = 3.8%
Discount rate for the period = 0.038* (118/365)
= 0.0122849315068493 or 1.22849315068493%
Future value = Php. 4,600
Step 2 - Present value
As per formula
Present value = Future value/(1+Interest rate for the period)
= 4600/(1+0.0122849315068493)
= 4600/1.0122849315068493
= 4544.17511989694
Therefore
Present value =Php. 4544.17511989694

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