Engineering Board Exam Reviewer · Present Worth Analysis · easy
An insurance plan pays P10,000 at the end of each quarter for 5 years. Find its present worth at 8% compounded quarterly.
- P200,000
- P163,514.33
- P39,927.10
- P47,134.60
Answer
B. P163,514.33
Solution
i=0.08/4=0.02 and n=20. PW=10,000(P/A,2%,20)=10,000(16.3514)=P163,514.33.
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