1.

suppose we place P100 in savings account that pays 6%/annum interest, compounded semi-annually, how much will t
PV 100
I 0.06
Term/years 7
160
semi annually 2
FV? 140
₱151.26 120

100
year FV
1 106.09 80
2 112.55
60
3 119.41
4 126.68 40
5 134.39 20
6 142.58
0
7 151.26

2. what is the present value of P500 to be received 10 years from today, if discount rate is 6%? 
₱279.20

year PV
1 471.698113207547
500
2 444.99822000712
450
3 419.809641516151
400
4 396.04683161901
350
5 373.629086433028
300
6 352.480270219838
250
7 332.528556811168 200
8 313.706185670913 150
9 295.949231765012 100
10 279.197388457559 50
0
1 2

3. if to provide for a college education, we are going to deposit P50,000 at the end of each year for the next five years in a
year at the end of the year interest rate FV
1 50000 6% 50000
2 50000 6% 103000 300000
3 50000 6% 159180
4 50000 6% 218730.8 250000
5 50000 6% 281854.65 200000

150000

100000

50000

0
1
 50000

0
1

4. how much is it worth to us today, for P500 to be received at the end of each year for the next 5 years at a discount rate

year at the end of each year discount rate PV

1 500 6% 500
2 500 6% 944.99822
3 500 6% 1315.8581
4 500 6% 1622.1575
5 500 6% 1872.3456

5. Find the present value of

the investment.

its cash flow projections

follow:
year CF discount rate PV
1 500 6% ₱471.70
2 200 6% ₱178.00
3 -400 6% -₱335.85
4 500 6% ₱396.05
5 500 6% ₱373.63
6 500 6% ₱352.48
7 500 6% ₱332.53
8 500 6% ₱313.71
9 500 6% ₱295.95
10 500 6% ₱279.20

net present value ₱2,657.39

6.

suppose the P10,000 we

placed in savings account
compounded quarterly for 7
years grew to 15,172.22 , what
is its periodic interest rate ?
what is its annual interest
rate ?
pv 10000 years FV
fv 15172.22 1 10000
terms 7 2 ₱10,862.04
rate? 6% 3 ₱11,724.07
4 ₱12,586.11
annual interest rate 6% 5 ₱13,448.15
compounded quarterly 4 6 ₱14,310.18
annual interest rate 0.015 7 ₱15,172.22
or 1.5%
5172.22 6
862.036666666667

7 suppose the P10,000 we placed in savings account at 6% per annum compounded monthly

16900=10000(1+.06/12)^12 (t)
16900/10000=(10000(1+.06/12)^12(t))/10000
1.69=(1+0.06/12)^12t
1.69=(1.005)^12t
log(1.69,1.005)/12=12t/12
8.76730997

.767
365
Calendar year
Hour
8 years and 9 months

8 if to provide for a P500,000 business college education, we are going to deposit at the star
rate 0.06
terms 5
type 1
pv?
-₱83,677.55
year FV
1 -₱111,979.43
2 -105640.97563
3 -99661.297762
4 -94020.092229
5 -88698.200216
total -₱500,000.00

-150000
nually, how much will the amount be at the end of 7 years?

INVESTMENT TIMELINE GRAPH

160

140

120

100
FV
80

60

40

20

0
1 2 3 4 5 6 7

INVESTMENT TIMELINE GRAPH

500
450
400
350
300 PV
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10

the next five years in a bank where it will earn 6% interest, how much will we have at the end of five years?

300000

250000

200000 year
150000 interest rate
FV
100000

50000

0
1 2 3 4 5
 50000

0
1 2 3 4 5

years at a discount rate of 6% ? 2106

INVESTMENT TIMELINE GRAPH

₱600.00
₱500.00
₱400.00
₱300.00
₱200.00 PV
₱100.00
₱0.00
-₱100.00 1 2 3 4 5 6 7 8 9 10

-₱200.00
-₱300.00
-₱400.00

FV
16000
14000
12000
10000
FV
8000
6000
4000
2000
0
1 2 3 4 5 6 7
 4000
2000
0
1 2 3 4 5 6 7

m compounded monthly grew to 16,900 , at what length of time must we invest it ?   _ years and _ months

ng to deposit at the start of each year for the next five years in a bank where it will earn 6% interest, how much do we have to deposit

3
FV
year
2

-150000 -100000 -50000 0 50000

uch do we have to deposit periodically ?