semi anual payment 500 php at the end each term for 10 years with interest rate of 5% compounded sime anualy
semi anual payment 500 php at the end each term for 10 years with interest rate of 5% compounded sime anualy.
So, what is the question? You have 20 semi-annual payments @ 5% comp. semi-annually.
If you want their PV(present value), then you have:
PV=P{[1 + R]^N - 1.[1 + R]^-N} R^-1=PV OF $1 PER PERIOD.
PV=500{[1 + 0.05/2]^10*2 - 1 x [1 + 0.05/2]^-10*2 x (0.05/2)^-1}
PV=7,794.58 php
If you want their FV(future value), then we have:
FV=P{[1 + R]^N - 1/ R}=FV OF $1 PER PERIOD.
FV=500 {[1 + 0.05/2]^10*2 - 1 / 0.05/2}
FV=12,772.33 php
