The following installments were made: P1,213 as down payment, P2,009 at the end of one year, P2,609 at the end of two years, P3,070 at the end of three years, and P4,213 at the end of four years. Determine the present value of the installment payments if money is worth 11.39% compounded annually.

The following installments were made: P1,213 as down payment, P2,009 at the end of one year, P2,609 at the end of two years, P3,070 at the end of three years, and P4,213 at the end of four years. Determine the present value of the installment payments if money is worth 11.39% compounded annually.

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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Question

The following installments were made: P1,213 as
down payment, P2,009 at the end of one year,
P2,609 at the end of two years, P3,070 at the end of
three years, and P4,213 at the end of four years.
Determine the present value of the installment
payments if money is worth 11.39% compounded
annually.

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