A man expects to receive P125,000 in 8 years. How much must he invest now considering an interest rate of 12% compounded quarterly.

Question

A man expects to receive P125,000 in 8 years. How much must he invest now considering an interest rate of 12% compounded quarterly.
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Solution 1

To solve this problem, we need to use the formula for the future value of an investment compounded quarterly, which is:

FV = PV * (1 + r/n)^(nt)

Where: FV = future value of the investment PV = present value of the investment (what we're trying to find) r = annual interest rate (in decimal form) n Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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