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How much must invest if want the balance in cd account

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Problem 1: You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12%, compounded monthly. How much must you invest if you want the balance in the CD account to be P8,500 in five years?

Problem 2: Consider a one-year discount bond that pays P1,000 one year from now. If the rate of discount is 7%, what is the present value of the bond?

Problem 3: Consider a one-year discount bond that has a present value of P1,000. If the rate of discount is 7%, what is the future value of the bond (the amount the bond pays in one year)?

Reference no: EM132815611

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