document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1188286>Question 1188286</A>: <I><SPAN STYLE=\"word-break: break-all;\"> What is the present value of 10 semi-annual payments of 2,000 pesos each if the first payment is due at the end of 3 years and money is worth 8% compounded quarterly? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #819366 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=819366\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the interest rate per semi-annual period is calculated as follows:\r<BR>\n" );
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document.write( "8% / 4 = 2% per quarter.<BR>\n" );
document.write( "1.02^2 = 1.0404 - 1 = .0404 * 100 = 4.04% per semi-annual time period.\r<BR>\n" );
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document.write( "present value of 10 semi-annual payments of 2000 each is equal to 16,189.53796.\r<BR>\n" );
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document.write( "the present value of that for an addition 6 semi-annual time periods is equal to 12,765.3402.\r<BR>\n" );
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document.write( "your solution is 12,765.34, rounded to the nearest penny.\r<BR>\n" );
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document.write( "i used the ti-ba-ii business analyst calculator to get these results.\r<BR>\n" );
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document.write( "an online calculator that gives similar results can be found at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>\r<BR>\n" );
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document.write( "the present value from that calculator is 16,189.54.\r<BR>\n" );
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document.write( "the present value of that for an additional 6 semi-annual periods is equal to that divided by 1.0404^6 = 12,765.34181.\r<BR>\n" );
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document.write( "round to nearest penny to get 12,765.34.\r<BR>\n" );
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document.write( "here are the resuls from using that calculator.\r<BR>\n" );
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document.write( "i also did an excel analysis to give you the semi-annual period by semi-annual time periods results.\r<BR>\n" );
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document.write( "that shows that the present value is 12,765.35.<BR>\n" );
document.write( "that grows to 16,189.54 in semi-annual period 6, at which time the payments of 2000 at the end of each semi-annual time period kick in.<BR>\n" );
document.write( "the loan terminates in 10 additional semi-annual time periods, when the remaining balance becomes equal to 0.\r<BR>\n" );
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document.write( "here's what the excel results look like.\r<BR>\n" );
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document.write( "let me know if you have any questions.\r<BR>\n" );
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document.write( "theo\r<BR>\n" );
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document.write( " </SPAN>\n" );
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