Present value: The current worth of a future sum of money or stream of cash flows, given a specified rate of return. Future cash flows are "discounted" at the discount rate; the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to valuing future cash flows properly, whether they be earnings or obligations.[2]
Present value of an annuity: An annuity is a series of equal payments or receipts that occur at evenly spaced intervals. Leases and rental payments are examples. The payments or receipts occur at the end of each period for an ordinary annuity while they occur at the beginning of each period for an annuity due.[3]
Present value of a perpetuity is an infinite and constant stream of identical cash flows.[4]
Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Thought to have originated in 17th-century Italy, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. The rate at which compound interest accrues depends on the frequency of compounding; the higher the number of compounding periods, the greater the compound interest. Thus, the amount of compound interest accrued on $100 compounded at 10% annually will be lower than that on $100 compounded at 5% semi-annually over the same time period.
Basic Time Value of Money Formula and Example
Depending on the exact situation in question, the TVM formula may change slightly. For example, in the case of annuity or perpetuity payments, the generalized formula has additional or less factors. But in general, the most fundamental TVM formula takes into account the following variables:
FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years
Based on these variables, the formula for TVM is:
FV = PV x (1 + (i / n)) ^ (n x t)
For example, assume a sum of $10,000 is invested for one year at 10% interest. The future value of that money is:
FV = $10,000 x (1 + (10% / 1) ^ (1 x 1) = $11,000
The formula can also be rearranged to find the value of the future sum in present day dollars. For example, the value of $5,000 one year from today, compounded at 7% interest, is:
PV = $5,000 / (1 + (7% / 1) ^ (1 x 1) = $4,673
Present value: The current worth of a future sum of money or stream of cash flows, given a specified rate of return. Future cash flows are "discounted" at the discount rate; the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to valuing future cash flows properly, whether they be earnings or obligations.[2]
Present value of an annuity: An annuity is a series of equal payments or receipts that occur at evenly spaced intervals. Leases and rental payments are examples. The payments or receipts occur at the end of each period for an ordinary annuity while they occur at the beginning of each period for an annuity due.[3]
Present value of a perpetuity is an infinite and constant stream of identical cash flows.[4]
Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Thought to have originated in 17th-century Italy, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. The rate at which compound interest accrues depends on the frequency of compounding; the higher the number of compounding periods, the greater the compound interest. Thus, the amount of compound interest accrued on $100 compounded at 10% annually will be lower than that on $100 compounded at 5% semi-annually over the same time period.
Basic Time Value of Money Formula and Example
Depending on the exact situation in question, the TVM formula may change slightly. For example, in the case of annuity or perpetuity payments, the generalized formula has additional or less factors. But in general, the most fundamental TVM formula takes into account the following variables:
FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years
Based on these variables, the formula for TVM is:
FV = PV x (1 + (i / n)) ^ (n x t)
For example, assume a sum of $10,000 is invested for one year at 10% interest. The future value of that money is:
FV = $10,000 x (1 + (10% / 1) ^ (1 x 1) = $11,000
The formula can also be rearranged to find the value of the future sum in present day dollars. For example, the value of $5,000 one year from today, compounded at 7% interest, is:
PV = $5,000 / (1 + (7% / 1) ^ (1 x 1) = $4,673
Tom Selleck Net Worth: A Comprehensive Analysisgreendigital
Over several decades, Tom Selleck, a name synonymous with charisma. From his iconic role as Thomas Magnum in the television series "Magnum, P.I." to his enduring presence in "Blue Bloods," Selleck has captivated audiences with his versatility and charm. As a result, "Tom Selleck net worth" has become a topic of great interest among fans. and financial enthusiasts alike. This article delves deep into Tom Selleck's wealth, exploring his career, assets, endorsements. and business ventures that contribute to his impressive economic standing.
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Early Life and Career Beginnings
The Foundation of Tom Selleck's Wealth
Born on January 29, 1945, in Detroit, Michigan, Tom Selleck grew up in Sherman Oaks, California. His journey towards building a large net worth began with humble origins. , Selleck pursued a business administration degree at the University of Southern California (USC) on a basketball scholarship. But, his interest shifted towards acting. leading him to study at the Hills Playhouse under Milton Katselas.
Minor roles in television and films marked Selleck's early career. He appeared in commercials and took on small parts in T.V. series such as "The Dating Game" and "Lancer." These initial steps, although modest. laid the groundwork for his future success and the growth of Tom Selleck net worth. Breakthrough with "Magnum, P.I."
The Role that Defined Tom Selleck's Career
Tom Selleck's breakthrough came with the role of Thomas Magnum in the CBS television series "Magnum, P.I." (1980-1988). This role made him a household name and boosted his net worth. The series' popularity resulted in Selleck earning large salaries. leading to financial stability and increased recognition in Hollywood.
"Magnum P.I." garnered high ratings and critical acclaim during its run. Selleck's portrayal of the charming and resourceful private investigator resonated with audiences. making him one of the most beloved television actors of the 1980s. The success of "Magnum P.I." played a pivotal role in shaping Tom Selleck net worth, establishing him as a major star.
Film Career and Diversification
Expanding Tom Selleck's Financial Portfolio
While "Magnum, P.I." was a cornerstone of Selleck's career, he did not limit himself to television. He ventured into films, further enhancing Tom Selleck net worth. His filmography includes notable movies such as "Three Men and a Baby" (1987). which became the highest-grossing film of the year, and its sequel, "Three Men and a Little Lady" (1990). These box office successes contributed to his wealth.
Selleck's versatility allowed him to transition between genres. from comedies like "Mr. Baseball" (1992) to westerns such as "Quigley Down Under" (1990). This diversification showcased his acting range. and provided many income streams, reinforcing Tom Selleck net worth.
Television Resurgence with "Blue Bloods"
Sustaining Wealth through Consistent Success
In 2010, Tom Selleck began starring as Frank Reagan i
From Slave to Scourge: The Existential Choice of Django Unchained. The Philos...Rodney Thomas Jr
#SSAPhilosophy #DjangoUnchained #DjangoFreeman #ExistentialPhilosophy #Freedom #Identity #Justice #Courage #Rebellion #Transformation
Welcome to SSA Philosophy, your ultimate destination for diving deep into the profound philosophies of iconic characters from video games, movies, and TV shows. In this episode, we explore the powerful journey and existential philosophy of Django Freeman from Quentin Tarantino’s masterful film, "Django Unchained," in our video titled, "From Slave to Scourge: The Existential Choice of Django Unchained. The Philosophy of Django Freeman!"
From Slave to Scourge: The Existential Choice of Django Unchained – The Philosophy of Django Freeman!
Join me as we delve into the existential philosophy of Django Freeman, uncovering the profound lessons and timeless wisdom his character offers. Through his story, we find inspiration in the power of choice, the quest for justice, and the courage to defy oppression. Django Freeman’s philosophy is a testament to the human spirit’s unyielding drive for freedom and justice.
Don’t forget to like, comment, and subscribe to SSA Philosophy for more in-depth explorations of the philosophies behind your favorite characters. Hit the notification bell to stay updated on our latest videos. Let’s discover the principles that shape these icons and the profound lessons they offer.
Django Freeman’s story is one of the most compelling narratives of transformation and empowerment in cinema. A former slave turned relentless bounty hunter, Django’s journey is not just a physical liberation but an existential quest for identity, justice, and retribution. This video delves into the core philosophical elements that define Django’s character and the profound choices he makes throughout his journey.
Link to video: https://youtu.be/GszqrXk38qk
Experience the thrill of Progressive Puzzle Adventures, like Scavenger Hunt Games and Escape Room Activities combined Solve Treasure Hunt Puzzles online.
Meet Dinah Mattingly – Larry Bird’s Partner in Life and Loveget joys
Get an intimate look at Dinah Mattingly’s life alongside NBA icon Larry Bird. From their humble beginnings to their life today, discover the love and partnership that have defined their relationship.
240529_Teleprotection Global Market Report 2024.pdfMadhura TBRC
The teleprotection market size has grown
exponentially in recent years. It will grow from
$21.92 billion in 2023 to $28.11 billion in 2024 at a
compound annual growth rate (CAGR) of 28.2%. The
teleprotection market size is expected to see
exponential growth in the next few years. It will grow
to $70.77 billion in 2028 at a compound annual
growth rate (CAGR) of 26.0%.
Young Tom Selleck: A Journey Through His Early Years and Rise to Stardomgreendigital
Introduction
When one thinks of Hollywood legends, Tom Selleck is a name that comes to mind. Known for his charming smile, rugged good looks. and the iconic mustache that has become synonymous with his persona. Tom Selleck has had a prolific career spanning decades. But, the journey of young Tom Selleck, from his early years to becoming a household name. is a story filled with determination, talent, and a touch of luck. This article delves into young Tom Selleck's life, background, early struggles. and pivotal moments that led to his rise in Hollywood.
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Early Life and Background
Family Roots and Childhood
Thomas William Selleck was born in Detroit, Michigan, on January 29, 1945. He was the second of four children in a close-knit family. His father, Robert Dean Selleck, was a real estate investor and executive. while his mother, Martha Selleck, was a homemaker. The Selleck family relocated to Sherman Oaks, California. when Tom was a child, setting the stage for his future in the entertainment industry.
Education and Early Interests
Growing up, young Tom Selleck was an active and athletic child. He attended Grant High School in Van Nuys, California. where he excelled in sports, particularly basketball. His tall and athletic build made him a standout player, and he earned a basketball scholarship to the University of Southern California (U.S.C.). While at U.S.C., Selleck studied business administration. but his interests shifted toward acting.
Discovery of Acting Passion
Tom Selleck's journey into acting was serendipitous. During his time at U.S.C., a drama coach encouraged him to try acting. This nudge led him to join the Hills Playhouse, where he began honing his craft. Transitioning from an aspiring athlete to an actor took time. but young Tom Selleck became drawn to the performance world.
Early Career Struggles
Breaking Into the Industry
The path to stardom was a challenging one for young Tom Selleck. Like many aspiring actors, he faced many rejections and struggled to find steady work. A series of minor roles and guest appearances on television shows marked his early career. In 1965, he debuted on the syndicated show "The Dating Game." which gave him some exposure but did not lead to immediate success.
The Commercial Breakthrough
During the late 1960s and early 1970s, Selleck began appearing in television commercials. His rugged good looks and charismatic presence made him a popular brand choice. He starred in advertisements for Pepsi-Cola, Revlon, and Close-Up toothpaste. These commercials provided financial stability and helped him gain visibility in the industry.
Struggling Actor in Hollywood
Despite his success in commercials. breaking into large acting roles remained a challenge for young Tom Selleck. He auditioned and took on small parts in T.V. shows and movies. Some of his early television appearances included roles in popular series like Lancer, The F.B.I., and Bracken's World. But, it would take a
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In the vast landscape of cinema, stories have been told, retold, and reimagined in countless ways. At the heart of this narrative evolution lies the concept of a "remake". A successful remake allows us to revisit cherished tales through a fresh lens, often reflecting a different era's perspective or harnessing the power of advanced technology. Yet, the question remains, what makes a remake successful? Today, we will delve deeper into this subject, identifying the key ingredients that contribute to the success of a remake.
From the Editor's Desk: 115th Father's day Celebration - When we see Father's day in Hindu context, Nanda Baba is the most vivid figure which comes to the mind. Nanda Baba who was the foster father of Lord Krishna is known to provide love, care and affection to Lord Krishna and Balarama along with his wife Yashoda; Letter’s to the Editor: Mother's Day - Mother is a precious life for their children. Mother is life breath for her children. Mother's lap is the world happiness whose debt can never be paid.
Create a Seamless Viewing Experience with Your Own Custom OTT Player.pdfGenny Knight
As the popularity of online streaming continues to rise, the significance of providing outstanding viewing experiences cannot be emphasized enough. Tailored OTT players present a robust solution for service providers aiming to enhance their offerings and engage audiences in a competitive market. Through embracing customization, companies can craft immersive, individualized experiences that effectively hold viewers' attention, entertain them, and encourage repeat usage.
Skeem Saam in June 2024 available on ForumIsaac More
Monday, June 3, 2024 - Episode 241: Sergeant Rathebe nabs a top scammer in Turfloop. Meikie is furious at her uncle's reaction to the truth about Ntswaki.
Tuesday, June 4, 2024 - Episode 242: Babeile uncovers the truth behind Rathebe’s latest actions. Leeto's announcement shocks his employees, and Ntswaki’s ordeal haunts her family.
Wednesday, June 5, 2024 - Episode 243: Rathebe blocks Babeile from investigating further. Melita warns Eunice to stay clear of Mr. Kgomo.
Thursday, June 6, 2024 - Episode 244: Tbose surrenders to the police while an intruder meddles in his affairs. Rathebe's secret mission faces a setback.
Friday, June 7, 2024 - Episode 245: Rathebe’s antics reach Kganyago. Tbose dodges a bullet, but a nightmare looms. Mr. Kgomo accuses Melita of witchcraft.
Monday, June 10, 2024 - Episode 246: Ntswaki struggles on her first day back at school. Babeile is stunned by Rathebe’s romance with Bullet Mabuza.
Tuesday, June 11, 2024 - Episode 247: An unexpected turn halts Rathebe’s investigation. The press discovers Mr. Kgomo’s affair with a young employee.
Wednesday, June 12, 2024 - Episode 248: Rathebe chases a criminal, resorting to gunfire. Turf High is rife with tension and transfer threats.
Thursday, June 13, 2024 - Episode 249: Rathebe traps Kganyago. John warns Toby to stop harassing Ntswaki.
Friday, June 14, 2024 - Episode 250: Babeile is cleared to investigate Rathebe. Melita gains Mr. Kgomo’s trust, and Jacobeth devises a financial solution.
Monday, June 17, 2024 - Episode 251: Rathebe feels the pressure as Babeile closes in. Mr. Kgomo and Eunice clash. Jacobeth risks her safety in pursuit of Kganyago.
Tuesday, June 18, 2024 - Episode 252: Bullet Mabuza retaliates against Jacobeth. Pitsi inadvertently reveals his parents’ plans. Nkosi is shocked by Khwezi’s decision on LJ’s future.
Wednesday, June 19, 2024 - Episode 253: Jacobeth is ensnared in deceit. Evelyn is stressed over Toby’s case, and Letetswe reveals shocking academic results.
Thursday, June 20, 2024 - Episode 254: Elizabeth learns Jacobeth is in Mpumalanga. Kganyago's past is exposed, and Lehasa discovers his son is in KZN.
Friday, June 21, 2024 - Episode 255: Elizabeth confirms Jacobeth’s dubious activities in Mpumalanga. Rathebe lies about her relationship with Bullet, and Jacobeth faces theft accusations.
Monday, June 24, 2024 - Episode 256: Rathebe spies on Kganyago. Lehasa plans to retrieve his son from KZN, fearing what awaits.
Tuesday, June 25, 2024 - Episode 257: MaNtuli fears for Kwaito’s safety in Mpumalanga. Mr. Kgomo and Melita reconcile.
Wednesday, June 26, 2024 - Episode 258: Kganyago makes a bold escape. Elizabeth receives a shocking message from Kwaito. Mrs. Khoza defends her husband against scam accusations.
Thursday, June 27, 2024 - Episode 259: Babeile's skillful arrest changes the game. Tbose and Kwaito face a hostage crisis.
Friday, June 28, 2024 - Episode 260: Two women face the reality of being scammed. Turf is rocked by breaking
Meet Crazyjamjam - A TikTok Sensation | Blog EternalBlog Eternal
Crazyjamjam, the TikTok star everyone's talking about! Uncover her secrets to success, viral trends, and more in this exclusive feature on Blog Eternal.
Source: https://blogeternal.com/celebrity/crazyjamjam-leaks/
As a film director, I have always been awestruck by the magic of animation. Animation, a medium once considered solely for the amusement of children, has undergone a significant transformation over the years. Its evolution from a rudimentary form of entertainment to a sophisticated form of storytelling has stirred my creativity and expanded my vision, offering limitless possibilities in the realm of cinematic storytelling.
Maximizing Your Streaming Experience with XCIPTV- Tips for 2024.pdfXtreame HDTV
In today’s digital age, streaming services have become an integral part of our entertainment lives. Among the myriad of options available, XCIPTV stands out as a premier choice for those seeking seamless, high-quality streaming. This comprehensive guide will delve into the features, benefits, and user experience of XCIPTV, illustrating why it is a top contender in the IPTV industry.
Scandal! Teasers June 2024 on etv Forum.co.zaIsaac More
Monday, 3 June 2024
Episode 47
A friend is compelled to expose a manipulative scheme to prevent another from making a grave mistake. In a frantic bid to save Jojo, Phakamile agrees to a meeting that unbeknownst to her, will seal her fate.
Tuesday, 4 June 2024
Episode 48
A mother, with her son's best interests at heart, finds him unready to heed her advice. Motshabi finds herself in an unmanageable situation, sinking fast like in quicksand.
Wednesday, 5 June 2024
Episode 49
A woman fabricates a diabolical lie to cover up an indiscretion. Overwhelmed by guilt, she makes a spontaneous confession that could be devastating to another heart.
Thursday, 6 June 2024
Episode 50
Linda unwittingly discloses damning information. Nhlamulo and Vuvu try to guide their friend towards the right decision.
Friday, 7 June 2024
Episode 51
Jojo's life continues to spiral out of control. Dintle weaves a web of lies to conceal that she is not as successful as everyone believes.
Monday, 10 June 2024
Episode 52
A heated confrontation between lovers leads to a devastating admission of guilt. Dintle's desperation takes a new turn, leaving her with dwindling options.
Tuesday, 11 June 2024
Episode 53
Unable to resort to violence, Taps issues a verbal threat, leaving Mdala unsettled. A sister must explain her life choices to regain her brother's trust.
Wednesday, 12 June 2024
Episode 54
Winnie makes a very troubling discovery. Taps follows through on his threat, leaving a woman reeling. Layla, oblivious to the truth, offers an incentive.
Thursday, 13 June 2024
Episode 55
A nosy relative arrives just in time to thwart a man's fatal decision. Dintle manipulates Khanyi to tug at Mo's heartstrings and get what she wants.
Friday, 14 June 2024
Episode 56
Tlhogi is shocked by Mdala's reaction following the revelation of their indiscretion. Jojo is in disbelief when the punishment for his crime is revealed.
Monday, 17 June 2024
Episode 57
A woman reprimands another to stay in her lane, leading to a damning revelation. A man decides to leave his broken life behind.
Tuesday, 18 June 2024
Episode 58
Nhlamulo learns that due to his actions, his worst fears have come true. Caiphus' extravagant promises to suppliers get him into trouble with Ndu.
Wednesday, 19 June 2024
Episode 59
A woman manages to kill two birds with one stone. Business doom looms over Chillax. A sobering incident makes a woman realize how far she's fallen.
Thursday, 20 June 2024
Episode 60
Taps' offer to help Nhlamulo comes with hidden motives. Caiphus' new ideas for Chillax have MaHilda excited. A blast from the past recognizes Dintle, not for her newfound fame.
Friday, 21 June 2024
Episode 61
Taps is hungry for revenge and finds a rope to hang Mdala with. Chillax's new job opportunity elicits mixed reactions from the public. Roommates' initial meeting starts off on the wrong foot.
Monday, 24 June 2024
Episode 62
Taps seizes new information and recruits someone on the inside. Mary's new job
2. ANNUITY – a sequence of payments made at equal (fixed) intervals or periods of time.
◦ Annuities may be classified in different ways, as follows:
ANNUITIES
According to payment
interval and interest
period
Simple Annuity – an annuity
where the payment interval is the
same as the interest period.
General Annuity – an annuity where
the payment interval is not the same
as the interest.
According to time of
payment
Ordinary Annuity or Annuity
Immediate – a type of annuity in
which the payments are made at
the end of each payment interval.
Annuity Due – a type of annuity in
which the payments are made at the
beginning of each payment interval.
According to duration Annuity Certain – an annuity in
which payments begin and end at
definite times.
Contingent Annuity – an annuity in
which the payments extend over an
indefinite (or indeterminate) length
of time.
3. Term of annuity, t – time between the first payment interval and last payment interval
Regular or Periodic payment, R – the amount of each payment
Amount (Future Value) of an annuity, F – sum of future values of all the payments to be made
during the entire term of the annuity
Present value of an annuity, P – sum ofpresent values of all the payments to be made during
the entire term of the annuity
Annuities may be illustrated using a time diagram. The time diagram for an ordinary annuity
(i.e., payments are made at the end of the year is given below.
Time Diagram for an n-Payment Ordinary Annuity
R R R R R . . . R
0 1 2 3 4 5 n
4. Example 1. Suppose Mrs. Remoto would like to save P 3,000.00 every month in a fund that gives 9%
compounded monthly. How much is the amount or future value of her savings after 6 months?
Given: Periodic payment, R = P 3,000.00 Find: amount (future value) at the end of the term, F.
term, t = 6 months
interest rate per annum i(12) = 0.09
number of conversions per year, m = 12
interest rate per period, j = 0.09/12 = 0.0075
Solution:
(1) Illustrate the cash flow in a time diagram
3,000.00 3,0000.00 3,000.00 3,000.00 3,000.00 3,000.00
0 1 2 3 4 5 6
5. (2) Find the future value of all the payments at the end of term (t = 6)
3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
0 1 2 3 4 5 6
3,000.00
3,000.00(1 + 0.0075)
3,000.00(1 + 0.0075)2
3,000.00(1 + 0.0075)3
3,000.00(1 + 0.0075)4
3,000.00(1 + 0.0075)5
◦
6. (3) Add all the future values obtained from the previous steps
3,000.00 = 3,000.00
3,000.00(1 + 0.0075) = 3,022.50
3,000.00(1 + 0.0075)2 = 3,045.169
3,000.00(1 + 0.0075)3 = 3,068.008
3,000.00(1 + 0.0075)4 = 3,091.018
3,000.00(1 + 0.0075)5 = 3,114.20
P 18,340.89
Thus, the amount of this annuity is P 18,340.89
7. The future value F of an ordinary annuity is given by:
Amount (Future Value) of Ordinary Annuity:
(1 + j)n – 1 where: R is the regular payment
F = R j is the interest rate per period
j n is the number of payments
8. Example 2. In order to save for her high school graduation, Marie decided to save P 200.00 at the end of
each month. If the bank pays 0.250% compounded monthly, how much will her money be at the end of 6
years?
Given: R = P 200.00 j = 0.0025/12 = 0.0002083
m = 12 t = 6 years
i(12) = 0.250% = 0.0025 n = mt = (12)(6) = 72 periods
Solution:
F = R {(1 + j)n – 1/j)}
F = P 200.00 {( 1 + 0.0002083 )72 – 1)/0.0002083 )}
F = P 14,507.85
9. Present Value of an Ordinary Annuity:
1 - (1 + j)-n where: R is the regular payment
P = R j is the interest rate per period
j n is the number of payments
10. Example 3. Mr. Ribaya paid P 200,000.00 as down payment for a car. The remaining amount is to be settled
by paying P 16,200.00 at the end of each month for 5 years. If the interest is 10.5% compounded monthly,
what is the cash price of his car?
Given: R = P 200.00 j = 0.105/12 = 0.00875
m = 12 t = 5 years
i(12) = 10.5% = 0.105 n = mt = (12)(5) = 60 periods
Down payment = P 200,000.00
Find: Cash value or cash price of the car
Solution:
P = R {(1 – (1 + j)-n/j)}
P = P 16,200.00 {(1 – ( 1 + 0.00875 )-60)/0.00875)}
P = P 753,702.20
Cash Value = Down payment + Present value
= P 200,000.00 + P 753,702.20
Cash Value = P 953,702.20
11. Periodic payment R of an Annuity:
(1 + j)n - 1 (1 + j)n - 1
F = R R = F/
j j
(1 – (1 + j)-n 1 - (1 + j)-n
P = R R = P/
j j
Where:
R is the regular payment P is the present value of an annuity
F is the future value of an annuity j is the interest rate per period
n is the number of payments
12. Example 4. Paolo borrowed P 100,000.00. He agrees to pay the principal plus interest by paying an equal
amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded
annually?
Given: P = P 100,000.00 j = 0.08
m = 1 t = 3 years
i(1) = 8% = 0.08 n = mt = (1)(3) = 3 periods
Find: Periodic payment R
Solution:
P = R {(1 – (1 + j)-n/j)} then
R = P / {(1 – (1 + j)-n/j)}
R = P 100,000.00 / {(1 – ( 1 + 0.08)-3)/0.08)}
P = P 38,803.35
Thus, the man should pay P 38,803.35 every year for 3 years
13. ACTIVITY 7
Solve the following:
1. Linda started to deposit P 2,000.00 quarterly in a fund that pays 5.5% compounded quarterly. How
much will be in the fund after
2. The buyer of a house and lot pays P 200,000.00 cash and P 10,000.00 every month for 20 years. If
money is 9% compounded monthly, how much is the cash value of the lot?
3. Rebecca borrowed P 150,000.00 payable in 2 years. To repay the loan, she must pay an amount
every month with an interest rate of 6% compounded monthly. How much should he pay every
month?
4. Mr. Sarsonas would like to save P 500,000.00 for his son’s college education. How much should he
deposit in a savings account after 6 months for 12 years if interest is at 1% compounded semi-
annually?
5. A television is for sale at P 17,999.00 in cash or on terms, P 1,600.00 each month for the next 12
months. The money is 9% compounded monthly. Which is lower, the cash price or the present value
of the installment terms?