Question

In: Accounting

An engineer buys a piece of lot for 250000 down payment and 10 deferred semi-annual payments...

An engineer buys a piece of lot for 250000 down payment and 10 deferred semi-annual
payments of P20,000 each, starting 3 ½ years from now. What is the present value of the
investment if the rate of interest is 11.5% compounded quarterly?

*CASH FLOW Diagram Needed

Solutions

Expert Solution

the value of the investment will be P 355,595.43.

If you have any queries or didn't understand any step, please comment so that I can resolve your query.

Cash flow diagram:


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