Question

3. Find the present value of ₱85,000, if the interest rate is 6% compounded quarterly, for 10 years.

Answer 1

Answer:

The Present Value is ₱67,327.96

Explanation:

The present value is calculated using:

$P=\frac{F}{(1+r)^n}$

Where P is the present value, F is the future value (₱85,000), r is the rate(6%), and n is the number of periods (4).

$\begin{gathered} P=\frac{85000}{(1+0.06)^4} \\ \\ =\frac{85000}{1.06^4}=67327.96 \end{gathered}$