Final answer:
The present value of the P750 ordinary annuity is approximately P17,002.53.
Step-by-step explanation:
The student's question pertains to finding the amount and the present value of a P750 ordinary annuity that is paid monthly over 3 years, with an interest rate of 15% compounded monthly. Given this scenario, we first need to establish the monthly interest rate, which is 15%/12 months = 1.25% per month, then use the annuity formula for future value:
Future Value = P [{(1 + i)^n - 1) / i}], where P is the payment amount, i is the monthly interest rate in decimal form, and n is the total number of payments.
To find the present value of a P750 ordinary annuity payable monthly for 3 years at a 15% interest rate compounded monthly, we can use the formula for present value of an annuity:
Present Value = Payment Amount × [(1 - (1 + Monthly Interest Rate)^(-Number of Payments))] / Monthly Interest Rate
Plugging in the given values, the present value of the annuity is approximately P17,002.53.