document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1188769>Question 1188769</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the present value and the future value of semi-annual payments of 105,000 pesos with an interest rate of 12% compounded annually for 5 years. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #819948 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=819948\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the semi-annual payments are 105,000.<BR>\n" );
document.write( "the interest rate is 12% per year compounded annually.\r<BR>\n" );
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document.write( "the growth factor per semi-annual period is (1.12) ^ (1/2) = 1.058300524.<BR>\n" );
document.write( "the interest rate per semi-annual period is that minus 1 = .0583005244.<BR>\n" );
document.write( "multiply that by 100 and the interest rate per semi-annual period is 5.830052443%.<BR>\n" );
document.write( "percent divided by 100 = rate.<BR>\n" );
document.write( "rate * 100 = percent.\r<BR>\n" );
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document.write( "the financial calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a> uses the percent.<BR>\n" );
document.write( "excel workbook and some formulas that you work manually use the rate.\r<BR>\n" );
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document.write( "the result of using the arachnoid calculator are shown below:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/121301.jpg\" >\r<BR>\n" );
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document.write( "inputs are everything except pv.<BR>\n" );
document.write( "output is pv.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/121302.jpg\" >\r<BR>\n" );
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document.write( "inuts are everything except fv.<BR>\n" );
document.write( "output is fv.\r<BR>\n" );
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document.write( "number of payments is equal to 5 years * 2 semi-annual periods per year = 10 semi-annual periods.\r<BR>\n" );
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document.write( "interest rate per time period is equal to 12% per year compounded annually.<BR>\n" );
document.write( "to find the interest rate per semi-annual period, do the following:<BR>\n" );
document.write( "12% / 100 = .12 per year.<BR>\n" );
document.write( ".12 + 1 = 1.12 growth factor per year<BR>\n" );
document.write( "1.12 ^ (1/2) = 1.058300524 growth factor per semi-annual time period.<BR>\n" );
document.write( "subtract 1 from that to get interest rate of .058300524 per semi-annual time period.<BR>\n" );
document.write( "multiply that by 100 to get 5.830052443% interest rate per semi-annual time period.\r<BR>\n" );
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document.write( "percent = rate * 100<BR>\n" );
document.write( "rate = percent / 100\r<BR>\n" );
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document.write( "the number of time periods and interest rate percent per time period are the same in both the present value and the fuure value analysis.\r<BR>\n" );
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document.write( "interest rate per semi-annual time period is not the same when you compound annually than when you compound semi-annually.\r<BR>\n" );
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document.write( "when you compound annually, the interest rate per semi-annual time period is ((1.12 ^ .5) - 1) * 100 = 5.830052443%.<BR>\n" );
document.write( "when you compound semi-annually (twice a year), the interest rate per semi-annual time period is 12% / 2 = 6%.\r<BR>\n" );
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document.write( "let me know if you have any questions.<BR>\n" );
document.write( "theo\r<BR>\n" );
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document.write( " </SPAN>\n" );
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