How much money be invested today in order to withdraw P1500 per year at the end of each year for 8 years at an interest rate of 8%? *
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The present value of an annuity formula is given by: PV = PMT * (1 - (1 + r)^-n) / r Where: PV = Present Value PMT = Payment per period r = Interest rate per period n = Number of periods In this case, the payment per period (PMT) is P1,500, the interest rate (r) Show more…
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