Calculate the present value of a perpetuity bond

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Question - Suppose I want to be able to withdraw P5,000 at the end of five years and withdraw P6,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If I can earn 5% on my balances, how much must I deposit today to satisfy my withdrawals needs?

-A P10,000 car loan has payments of P361.52 due at the end of each month for three years. What is the nominal interest rate?

-How much must you deposit at the end of each year in an account that pays an annual interest rate of 20%, if at the end of 5 years you want P10,000 in the account? (Round your final answer up to 2-decimal places)

-Joe Ferro's uncle is going to give him P250 every beg. of the month for the next two years starting today. If Joe deposits every amount he receives from his uncle in an account paying a nominal annual interest rate of 6% compounded monthly, how much will he have at the end of three years?

-Calculate the present value of a perpetuity bond that is expected to pay P50 of interest per year forever if the investor requires an annual return of 8 percent.

Reference no: EM133010331

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