Answer to Question #269003 in Financial Math for Ayana Prica

Question

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

Answer 1

$PV=FV$/[(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

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

$PV=65000/(1.11)^4$

$PV=65000/1.114$

$PV =58348.29$

PRESENT VALUE IS Php 58348.29