Quest

ion17of20b

Wi
thcont
inuouscompoundi
ngat8per
centf
or

20y
ear
s,whati
stheappr
oxi
mat
efut
urev
alue

ofaP20,
000i
nit
ial
inv
est
ment
?

Sel
ectt
hecor
rectr
esponse:

Ans:
P99,
061

Quest
ion18of20

1Poi
nt

Whi
choft
hef
oll
owi
ngwi
l
ldecr
easet
he

pr
esentv
alueoft
hemi
xedcashf
lowsf
or

y
ear
s1t
hrough5ofP1,
000;
P4,
000;
P9,
000;

P5,
000;
andP2,
000r
espect
ivel
ygi
vena10%

di
scountr
ate?

Sel
ectt
hecor
rectr
esponse

Ans:
Swi
tchcashf
lowsf
ory
ear
s2and5

sot
haty
ear2i
sP2,
000andy
ear5

i
sP4,
000.