Naturally, if you were to get $10,000 today interest rate is per year.
its present value would be $10,000 as the present value is what your investment would provide you if you spent it now. interest rate $12,001 has a present value of $9,181. 61. If money is worth 6% compounded semi-annually, calculate the present value and the quantity (future value) of an ordinary annuity of P5,000 that is payable every two years for ten years. P = P74,387.37 and F = P134,351.87 2. P stands for principal, I for interest rate, and n for the quantity of compounding periods. An investment of Rs. 1,000,000 over a period of five years at a 12% annual compounded rate of return is worth Rs. 1,76,234.
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