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You deposited PHP1,500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit? 2.
You deposited PHP1,500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit? 2. You need to save up for P1,500 in 1 year. How much should you save now if the bank offers a rate of 5%? (Find the PV) 3. What is the present value of the following cash flow stream if the interest is 6%? Year b. r = 8%, t = 10years c.r = 5%, t = 5years d. r = 5%, t = 10 years 1 2 3 Cash Flow 300 400 500 4. Compute the present value and future value of PHP100 cash flow for the following combination of discount rates and times: a. r = 8%, t = 5 years 5. You deposit PHP1,000 in your bank account. If the bank pays 4% simple interest, how much interest will you accumulate in your account after 10 years? What if the bank pays compound interest? 6. Mario will be making a lump sum payment of PHP1.6 million on the condominium he is buying two years from now. If he wants to set aside funds from now and invest it that will earn interest of 3%, net of taxes every year and this amount is compounded annually, how much does he need to invest today? What if the interest is compounded semi-annually, how much does he need to invest today?
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SOLUTION 1 The future value of the deposit can be calculated using the formula FV PV 1 rn where PV is the present value of the deposit r is the intere...Get Instant Access to Expert-Tailored Solutions
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