Calculate the present value of a perpetuity bond

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-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? (Round your final answer up to 2-decimal places)

-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)

-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: EM133013045

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