Question

Find the present value of Php 50,000.00 due in 4 years if money is invested at 12% compounded semi-annually.

Answer 1

In this case, Php 50,000 money invested for 4 years with 12% rates. If the rate is 12% compounded semi-annually that means it would be 6%/ 6 months. Then the amount of money after 4 years would be:

Php 50,000.00 * (100+6)%^(4 years/ 6 months)=
Php 50,000.00 * 106%^(8)= Php 79,692.40