GROUP NO.

15
CERCADO, SARMILLO
Solve for the following problems. (You can just insert an image of your answer
below each problem)
Lump Sum Practice Problem:
PRESENT VALUE
You have been offered a security investment such as a bond that will pay you P20,
000.00 at the end of 5 years in exchange for a fixed payment today. If the appropriate
annual interest rate on the investment is 5% compounded annually, what is the present
value of this investment?

FUTURE VALUE
You have plan to invest P75,000.00 today in exchange for a fixed payment at the end of
eight years. If the appropriate annual interest rate on the investment is 6% compounded
annually, what is the future value of this investment?
Annuity Practice Problem:
PRESENT VALUE
You have been offered a bond that will pay you P200,000.00 on the last day of every
year for the next six years in exchange for a fixed payment today. If the appropriate
annual interest rate on the investment is 16% compounded semi-annually, what is the
present value of this investment?

FUTURE VALUE
You plan to invest P24,000.00 on the last day of every year for the next ten years. If the
interest rate on the investment is 12% compounded quarterly, what is the future value of
your investment in ten years?