Assume that time today is Dec. 13, 2022. Determine what is being asked in each problem. 1. Ken has cash receipts at the start of each quarter amounting to ₱10,000 with the first being received today and the last one on Dec.13, 2023. What is the net value today of all these cash receipts if interest is 8.8% compounded quarterly? 2. Lola Trining bought a gift for Ken that promises to pay him 1,000 every year and so on... with the first payment given on Dec. 13, 2023. How much is the gift's value today if money is worth 5% effective per annum. 3. Regine agrees to settle a ₱100,000 loan borrowed from provident by making monthly salary deduction every 13th of the month for ten months beginning June 13, 2022. How much does she pay if interest is 1% every month? Hint: First payment is deferred after 5 months (periods). Accumulate the loan principal first then equate this to the present value of the deductions on May 13, 2023.
Assume that time today is Dec. 13, 2022. Determine what is being asked in each problem.
1. Ken has cash receipts at the start of each quarter amounting to ₱10,000 with the first being received today and the last one on Dec.13, 2023. What is the net value today of all these cash receipts if interest is 8.8% compounded quarterly?
2. Lola Trining bought a gift for Ken that promises to pay him 1,000 every year and so on... with the first payment given on Dec. 13, 2023. How much is the gift's value today if money is worth 5% effective per annum.
3. Regine agrees to settle a ₱100,000 loan borrowed from provident by making monthly salary deduction every 13th of the month for ten months beginning June 13, 2022. How much does she pay if interest is 1% every month? Hint: First payment is deferred after 5 months (periods). Accumulate the loan principal first then equate this to the present value of the deductions on May 13, 2023.
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