Question

Name: Calculation of Present Value of a Lump Sum You have been offered a security investment such as a bond that will pay you Php 10,000 at the end of 6 years in exchange for a fixed payment today, the appropriate annual interest rate on the investment is 12% compounded annually, what is the present value of the investment? Calculation of Future Value of a Lump Sum You plan to invest Php 10,000 today in exchange for a fixed payment at the end of six years. If the appropriate annual interest rate on the investment is 12%, what is the future value of the investment? Calculation of Present Value of an Annuity You have been offered a bond that will pay you Php 10,000 on the last day of every quarter for the next six years in exchange for a fixed payment today. If the appropriate annual interest rate on the investment is 8%, what is the present value of the annuity? Calculation of the Future Value of an Annuity If the investment pays you Php 10,000 on the last day of every quarter for the next six years and the appropriate annual interest rate is 8%, what is the future value of the annuity?

hello. i need some help in this.

Answer 1

Calculate present value of lump sum amount
Present value	Future value*(1/((1+r)^n)
Present value	10000*(1/(1.12^6))
Present value	10000*0.506631
Present value	$5,066.31
Calculate future value of lump sum amount
Future value	Present value*((1+r)^n)
Future value	10000*(1.12^6)
Future value	10000*1.973823
Future value	$19,738.23
Calculate present value of annuity
Present value	Annuity amount*Present value of annuity factor (n=24,r=2%)
Present value	10000*18.9139
Present value	$189,139.26
Calculate future value of annuity
Future value	Annuity amount*Future value of annuity factor (n=24,r=2%)
Future value	10000*30.4219
Future value	$304,218.62