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Compute for the future value of a ordinary annuity

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Question - TIME VALUE OF MONEY

Q1. Amarah currently has P125,000 from her savings. She would like to invest it on a security that pays 8.5 percent semi-annual compounding, how much will be her money after 8 years?

Q2. Bethany expects to receive P5,000,000 in 25 years from her investment. How much is the worth of her investment today, if the discount rate of this investment is 5.5 percent?

Q3. What is the PV of an ordinary annuity with 10 payments of P2,500 if the appropriate interest rate is 7.5 percent?

Q4. Compute for the future value of a 5-year ordinary annuity with annual payments of P2,000, evaluated at a 15 percent interest rate?

Reference no: EM132848929

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