Question

3. Find the present value of ₱85,000, if the interest rate is 6% compounded quarterly, for 10 years.

Answer 1

Answer:

The Present Value is ₱67,327.96

Step-by-step explanation:

The present value is calculated using:

`P=(F)/((1+r)^n)`

Where P is the present value, F is the future value (₱85,000), r is the rate(6%), and n is the number of periods (4).

`\begin{gathered} P=(85000)/((1+0.06)^4) \\ \\ =(85000)/(1.06^4)=67327.96 \end{gathered}`