SOLUTION: A sequence of 12 semi-annual payments of P28,000 is made in a bank paying 10% compounded every six months. What is the value of the payments now if the first payment is made at the
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Question 1193989: A sequence of 12 semi-annual payments of P28,000 is made in a bank paying 10% compounded every six months. What is the value of the payments now if the first payment is made at the end of the sixth month?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the present value of the payments is 248,171.05.
the interest rate for each semi-annual time period is 10/2 = 5%.
i used the ti-ba-ii business analyst calculator.
an online calculator that gives comparable results can be found at https://arachnoid.com/finance/index.html
the result from using this calculator are shown below:
the inputs were everything except present value.
the output is present value.
let me know if you have any questions.
theo
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