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This subject is about math of investment. Can you provide answer and solution to this problem 1. P10,000 is semi-annually withdrawn for 7 years from a bank giving 5.5% compounded semi-annually. Calculate the present value.

Solution

This subject is about math of investment. Can you provide answer and solution to this problem 1. P10, 000 is semi-annually withdrawn for 7 years from a bank giving 5.5% compounded semi-annually. Calculate the present value.

Solution

Amount : 14619.94

Solution steps

Translate the problem into an equation:

A = 10000 (1 + \frac{0.055}{2})^{2 \cdot 7}

10000 (1 + \frac{0.055}{2})^{2 \cdot 7} = 14619.94125 \dots

Round to the nearest hundredth:

14619.94

Amount : 14619.94

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