Question

If money is worth 6% compounded bi-monthly, find the present value of Php125,700 for 2 years.

Answer 1

compounded bi-monthly , n =6

$PV = \frac{FV}{(1+i)^n}$

$=\frac{Php125,700}{(1+0.06)^{6×2}}$

$=\frac{125,700}{(1.06)^{12}}$

$=Php62469.05$