# Solution: What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

A person buys a piece of lot for P100,000 downpayment and 10 deferred semi-annual payments of P8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

#### Problem Statement: ECE Board April 1998

A person buys a piece of lot for P100,000 downpayment and 10 deferred semi-annual payments of P8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

• A. P142,999.08
• B. P143,104.89
• C. P142,189.67
• D. P143,999.08

#### Problem Answer:

The present value of the investment if the rate of interest is 12% compounded semi-annually is P143,999.08.

Solution:

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