PRESENT VALUE Word ProblemsNote: The Present Value Formula is PV= FV/ (1+r)^n1. Angelo wants to renovate his house in 3 years. He estimates the cost to be P300,000. How much must Angelo invest now at 8% interest compounded quarterly, in order to have P300,000, 3 years from now.2. Arnold and Azura want to save P500,000 in 5 1⁄2 years to renovate their rest house. If the bank of Amber is paying 8% interest compounded quarterly, how much must they deposit now in order to have the money for the project?3. Find the present value of P85,000, if the interest rate is 6% compounded quarterly, for 10 years.4. Ashley and Aileen want to accumulate P300,000, 17 years from now, as a college fund for their baby daughter, Aria. Use the present value formula to calculate how much they must invest now, at an interest rate of 8% compounded semi-annually, in order to have P300,000 in 17years.

PRESENT VALUE Word ProblemsNote: The Present Value Formula is PV= FV/ (1+r)^n1. Angelo wants to renovate his house in 3 years. He estimates the cost to be P300,000. How much must Angelo invest now at 8% interest compounded quarterly, in order to have P300,000, 3 years from now.2. Arnold and Azura want to save P500,000 in 5 1⁄2 years to renovate their rest house. If the bank of Amber is paying 8% interest compounded quarterly, how much must they deposit now in order to have the money for the project?3. Find the present value of P85,000, if the interest rate is 6% compounded quarterly, for 10 years.4. Ashley and Aileen want to accumulate P300,000, 17 years from now, as a college fund for their baby daughter, Aria. Use the present value formula to calculate how much they must invest now, at an interest rate of 8% compounded semi-annually, in order to have P300,000 in 17years.

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