1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3 years?

2. How much must you invest at 12% interest, compounding quarterly, in order to see your investment grow to P5,000 in 27 months?

3. If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years?

4. You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive?

5. What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a 7.5% semi-annual interest rate?

6. If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what will it be worth in 5 years?

7. An investor puts P200 in a money market account TODAY that returns 3% with monthly compounding. The investor plans to keep his money in the account for 2 years. What is the future value of his investment when he closes the account two years from today?

8. Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semiannually. If you make consecutive semi-annual deposits of P500 each, with the first deposit being made today, what will your balance be at the end of Year 5?

9. You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments into an account which pays 10%, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?

10. You inherit P150,000 from your aunt. You decide to invest the money in a three-year certificate of Deposit (CD) that pays 4% interest, compounding quarterly, to use as a down payment on a house. How much money will you have when the CD matures?

11. You plan to invest an amount of money in a certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12%, compounded monthly. How much must you invest if you want the balance in the CD account to be P8,500 in 2 years?

12. Justine is thinking about purchasing an investment from RCBC Capital. If she buys the investment, Justine will receive P1,000 every three months for two years. The first P1,000 payment will be made as soon as she purchases the investment. If Justine's required rate of return is 16%, how much should she be willing to pay for this investment?

13. If you need P350,000 for a down payment on a house in 3 years, how much money must you invest today at 8% interest, compounded quarterly, to achieve your goal?

14. Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your firm's hurdle rate is 10%, what is the present value of five years' worth of rent?

15. You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments into an account which pays 10 percent, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?

Problem 1. What is the future value of the following cash ows AT THE END OF YEAR 5, assuming a 6% interest rate, compounded annually? End of Year Cash Flow 1 lP2,500 2 2,750 3 3,000 4 3,250 5 3,500 Problem 2. What is the present value of the following cash flows, if the discount rate is 10% annually? Beginning of Year Cash Flow 1 92,500 2 2,750 3 3,000 4 3,250 5 3,500 Problem 3. The Ginebra San Miguel convince Stephen Curry to play for the basketball franchise for three seasons. They offer the player P1 million in year 1, P25 million in year 2, and P3 million in year 3. Assuming end of year payments of the proceeds of the contract, how would we nd the value of his contract today if the player has a discount rate of 12%, compounding semi-annually? Problem 4. Which of the following investment opportunities all maturing at the end of 2 years and requiring the rate of return of 6% would you choose? Investment Compounding Future Value 1 Annually ?1,123,600.00 2 Monthly 91,127,159]?! 3 Quarterly ?1,126,492.59 Problem 5. Your rm is evaluating a project that should generate revenue of P4,600 in year one, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The rm receives each cash flow at the end of each year. If your firm's required return is 12%, compounding semi-annually, what is the future value of these cash ows at the end of year four? Problem 6. Justine Global Info Tech records the following cash flows at the end of each year for a project. If the firrn's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow 1 ?794,633.00 2 542, 149.00 3 #836,200.00 4 #716,080.00 5 #520,35400