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What is the present worth

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1. You borrow Php3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank?

2. What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 %?

3. A contract calls for a semiannual payment of P40,000.00 for the next 10 years and an additional payment of P250,000.00 at the end of that time. Find the equivalent cash value of the contract at 7% compounded semiannually.

Reference no: EM132977180

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