Instruction: Please calculate the correct amount and show your computation. 1. The future value of P2,500 received today and deposited at 6 percent for five years is 2. The present value of P50,000 to be received 10 years from now, assuming an opportunity cost of 9 percent is 3. If you expect to retire in 30 years, are currently comfortable living on P 100,000 per year and expect inflation to average 3 percent over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years? 4. The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is 5. The future value of an ordinary annuity of P1,750 each year for 10 years, deposited at 5 percent is 6. How much is the present value of your investment if you invest P2,000 semi-annually at the start of every six months for a period of 4 years with interest rate of 21 percent per annum? 7. Calculate the present value of your deposits in a cooperative if you make the deposit at the end of each year for a period of 13 years that earn an interest of 20 percent annually. 8. How much interest income would you earn if you lend P12,000 to borrowers charging them an interest of 30 percent per annum using the simple interest method? Compound interest method?
Instruction: Please calculate the correct amount and show your computation. 1. The future value of P2,500 received today and deposited at 6 percent for five years is 2. The present value of P50,000 to be received 10 years from now, assuming an opportunity cost of 9 percent is 3. If you expect to retire in 30 years, are currently comfortable living on P 100,000 per year and expect inflation to average 3 percent over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years? 4. The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is 5. The future value of an ordinary annuity of P1,750 each year for 10 years, deposited at 5 percent is 6. How much is the present value of your investment if you invest P2,000 semi-annually at the start of every six months for a period of 4 years with interest rate of 21 percent per annum? 7. Calculate the present value of your deposits in a cooperative if you make the deposit at the end of each year for a period of 13 years that earn an interest of 20 percent annually. 8. How much interest income would you earn if you lend P12,000 to borrowers charging them an interest of 30 percent per annum using the simple interest method? Compound interest method?
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:Instruction: Please calculate the correct amount and show your computation.
1. The future value of P2,500 received today and deposited at 6 percent for five years is
2. The present value of P50,000 to be received 10 years from now, assuming an
opportunity cost of 9 percent is,
3. If you expect to retire in 30 years, are currently comfortable living on P 100,000 per year
and expect inflation to average 3 percent over the next 30 years, what amount of annual
income will you need to live at the same comfort level in 30 years?
4. The future value of a P20,000 annuity due deposited at 8 percent compounded annually
for each of the next 10 years is
5. The future value of an ordinary annuity of P1,750 each year for 10 years, deposited at 5
percent is
6. How much is the present value of your investment if you invest P2,000 semi-annually at
the start of every six months for a period of 4 years with interest rate of 21 percent per
annum?
7. Calculate the present value of your deposits in a cooperative if you make the deposit at
the end of each year for a period of 13 years that earn an interest of 20 percent annually.
8. How much interest income would you earn if you lend P12,000 to borrowers charging
them an interest of 30 percent per annum using the simple interest method? Compound
interest method?
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