question archive You expect to receive P1,000 at the end of each of the next 3 years
You expect to receive P1,000 at the end of each of the next 3 years
Subject:FinancePrice:3.87 Bought7
You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments into an account which pays 10%, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?
a. P3,318.01
b. P3,993.00
c. P7,986.00
d. P665.50
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer : a. P3,318.01
Step-by-step explanation
| Period | Payment | Interest | Accumulated Amount |
| (Previous Amount x 10% / 2) | (Previous Amount + Payment + Interest) | ||
| End of 1st Year | 1000 | 1,000.00 | |
| 2nd Year - 1st Semester | 50.00 | 1,050.00 | |
| 2nd Year - 2nd Semester | 1000 | 52.50 | 2,102.50 |
| 3rd Year - 1st Semester | 105.13 | 2,207.63 | |
| 3rd Year - 2nd Semester | 1000 | 110.38 | 3,318.01 |
