It is known that an investment of P 5,000 will increase to P 40,000 at the end of 30 years. Find the sum of the present values of three payments of P 100,000 each which will occur at the end of 20, 40, and 60 years. Find first 1+ i then o² = (1+i) for t=20, 40, 60.

It is known that an investment of P 5,000 will increase to P 40,000 at the end of 30 years. Find the sum of the present values of three payments of P 100,000 each which will occur at the end of 20, 40, and 60 years. Find first 1+ i then o² = (1+i) for t=20, 40, 60.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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(3) It is known that an investment of P5,000 will increase to P40,000 at the end of 30 years. Find the
sum of the present values of three payments of P 100,000 each which will occur at the end of 20,
40, and 60 years. Find first 1 + i then v¹ = (1+i) fort=20, 40, 60.

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