RESENT VALUE OF ORDINARY ANNUITY The present value of an annuity is the principal that must be invested today to provide the regular payments of an annuity. Compute the present value of the lump sums amounting to Php100, 000 to be received five years from now with an annual compound interest rate of 5% using the formula given below. -nt -(1+:)* Present Valueord = PMT

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GENERAL MATHEMATICS
1+-)
PRESENT VALUE OF ORDINARY ANNUITY
present value of an annuity is the principal that must be invested today to provide the
regular payments of an annuity. Compute the present value of the lump sums amounting
to Php100, 000 to be received five years from now with an annual compound interest
rate of 5% using the formula given below.
The
-nt
Present Value ord
= PMT
n
Transcribed Image Text:1+-) PRESENT VALUE OF ORDINARY ANNUITY present value of an annuity is the principal that must be invested today to provide the regular payments of an annuity. Compute the present value of the lump sums amounting to Php100, 000 to be received five years from now with an annual compound interest rate of 5% using the formula given below. The -nt Present Value ord = PMT n
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