Question

Your father obtained a car loan payable in lump sum in 5 years at a total amount of P800,000 with an annual rate of 15%. What is the present value?

Answer 1

the present value is $397,741.39

Step-by-step explanation:

The computation of the present value is shown below

As we know that

Present value = Future value ÷ (1 + rate of interest)^years

= 800,000 ÷ (1 + 0.15)^5

= 800,000 ÷ 1.15^5

= $397,741.39

Hence, the present value is $397,741.39