Thus, the côst of Activity 7: Give Me the Present Value of the following General Annuities. 1. Quarterly payment of P 15,000 for 10 years with interest rate of 8% compounded annually. 2. Annual payments ofP 20,500 with interest rate of 8.5% compounded semi- annually for 3 years. 3. Semi-annual payments of P 150,000 with interest rate of 8% compounded annually for 10 years.
Thus, the côst of Activity 7: Give Me the Present Value of the following General Annuities. 1. Quarterly payment of P 15,000 for 10 years with interest rate of 8% compounded annually. 2. Annual payments ofP 20,500 with interest rate of 8.5% compounded semi- annually for 3 years. 3. Semi-annual payments of P 150,000 with interest rate of 8% compounded annually for 10 years.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.5: The Binomial Theorem
Problem 54E
Related questions
Question
Solve for activity no.7
![F, = F2
(12)
= P (1 + (2),
P (1 +
(1 + 12
(1+009,2
(1 +
12
C12)
12
(1 + 0.045)2
EC12)
1 +
[(1.045)²]1/12
12
(12)
= (1.045)/6-1
12
i(12)
= 1.00736312 - 1
12
(12)
=j = 0.00736312
12
J = 0.00736312%
Thus, the interest rate
per monthly payment interval is 0.00736312 or
0.736312%.
(2) Apply the formula in finding the present value of an ordinary annuity using the
computed equivalent rate
j = 0.00736312.
P = R
1-(1+/)-*
= 3,000
[1-(1+0.00736312)-6
0.00736312
= 3,000 0.04306218]
0.082432
= 3,000(5.848360)
utsVeh e
= 17,545.081433
P = 17,545.08
Thus, the cost of the TV set is P 17,545.08.
Activity 7: Give Me the Present Value of the following General
Annuities.
1. Quarterly payment of P 15,000 for 10 years with interest rate of 8%
compounded annually.
2. Annual payments of P 20,500 with interest rate of 8.5% compounded semi-
annually for 3 years.
3. Semi-annual payments of P 150,000 with interest rate of 8% compounded
annually for 10 years.
A cash flow is a term that refers to payments received (cash inflows)
or payments or deposits made (cash outflows). Cash inflows can be
represented by positive numbers and cash outflows can be
represented by negative numbers.
The fair market value or economic value of a cash flow (payment
stream) on a particular date refers to a single amount that is
equivalent to the value of the payment stream at that date. This
particular date is called the focal date.
17](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F388af922-65ff-4757-8842-1f5a0ea65924%2F8ac52520-5dbc-4bba-9556-1062e688320b%2Fj10kubw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:F, = F2
(12)
= P (1 + (2),
P (1 +
(1 + 12
(1+009,2
(1 +
12
C12)
12
(1 + 0.045)2
EC12)
1 +
[(1.045)²]1/12
12
(12)
= (1.045)/6-1
12
i(12)
= 1.00736312 - 1
12
(12)
=j = 0.00736312
12
J = 0.00736312%
Thus, the interest rate
per monthly payment interval is 0.00736312 or
0.736312%.
(2) Apply the formula in finding the present value of an ordinary annuity using the
computed equivalent rate
j = 0.00736312.
P = R
1-(1+/)-*
= 3,000
[1-(1+0.00736312)-6
0.00736312
= 3,000 0.04306218]
0.082432
= 3,000(5.848360)
utsVeh e
= 17,545.081433
P = 17,545.08
Thus, the cost of the TV set is P 17,545.08.
Activity 7: Give Me the Present Value of the following General
Annuities.
1. Quarterly payment of P 15,000 for 10 years with interest rate of 8%
compounded annually.
2. Annual payments of P 20,500 with interest rate of 8.5% compounded semi-
annually for 3 years.
3. Semi-annual payments of P 150,000 with interest rate of 8% compounded
annually for 10 years.
A cash flow is a term that refers to payments received (cash inflows)
or payments or deposits made (cash outflows). Cash inflows can be
represented by positive numbers and cash outflows can be
represented by negative numbers.
The fair market value or economic value of a cash flow (payment
stream) on a particular date refers to a single amount that is
equivalent to the value of the payment stream at that date. This
particular date is called the focal date.
17
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