Question #269003

What is the present value of Php65,000 at 11% compounded annually for 4 years?

1
Expert's answer
2021-11-24T17:07:40-0500

PV=FVPV=FV/[(1+r)]t

Pv-present value of the investment

Fv refers to the future value of the investment

r-rate

t-time in years

PV=?

FV= php 65000

r = 11% =0.11

t= 4


PV=65000/[1+0.11)]4PV=65000/[1+0.11)]^4

PV=65000/(1.11)4PV=65000/(1.11)^4

PV=65000/1.114PV=65000/1.114

PV=58348.29PV =58348.29

PRESENT VALUE IS Php 58348.29





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