If money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly for 3 years. If it is to be paid every 3 months, what equal amount of money should be available for payment in pesos? (Use the given formula in the image below)
If money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly for 3 years. If it is to be paid every 3 months, what equal amount of money should be available for payment in pesos? (Use the given formula in the image below)
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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- If money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly for 3 years. If it is to be paid every 3 months, what equal amount of money should be available for payment in pesos? (Use the given formula in the image below)
![FORMULA
Future Worth
F = 4|(1+i)"_1]
Present Worth
A[(1+1)" –1]
i(1+1)"
P =
where:
F = Future Worth
A = Annuity
i = NR/m
n = tm
NR = Nominal Rate
m = total number of conversion periods in 1 year
t = number of years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b4b3856-51d7-4051-a3f6-cb31c3ea875e%2F842b2665-1c85-4db4-989c-a4ef1aee4d49%2F0w8jr9zv_processed.png&w=3840&q=75)
Transcribed Image Text:FORMULA
Future Worth
F = 4|(1+i)"_1]
Present Worth
A[(1+1)" –1]
i(1+1)"
P =
where:
F = Future Worth
A = Annuity
i = NR/m
n = tm
NR = Nominal Rate
m = total number of conversion periods in 1 year
t = number of years
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