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Questions and Answers
Mr. DJ wants to earn a 6% return on his investment of Php 500,000 per year for 6 years. How much should he pay today considering a factor of 4.917324?
Mr. DJ wants to earn a 6% return on his investment of Php 500,000 per year for 6 years. How much should he pay today considering a factor of 4.917324?
- Php 4,000,000
- Php 2,500,000
- Php 1,000,000
- Php 3,000,000 (correct)
What is the annual payment that Mr. DJ will receive for 6 years if he invests Php 500,000 today and expects a 6% return?
What is the annual payment that Mr. DJ will receive for 6 years if he invests Php 500,000 today and expects a 6% return?
- Php 60,000 (correct)
- Php 120,000
- Php 90,000
- Php 30,000
If Mr. DJ wants to earn a 6% return on his investment, how much should he invest today to receive an annual payment of Php 60,000 for 6 years?
If Mr. DJ wants to earn a 6% return on his investment, how much should he invest today to receive an annual payment of Php 60,000 for 6 years?
- Php 2,500,000
- Php 1,000,000 (correct)
- Php 4,000,000
- Php 250,000
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Study Notes
Investment and Returns
- Mr. DJ wants to earn a 6% return on his investment per year for 6 years.
- To achieve this, he needs to consider a factor of 4.917324.
Investment Amount
- Mr. DJ needs to pay a certain amount today to earn the desired return.
- The investment amount is dependent on the desired annual payment and the return percentage.
Annual Payment
- If Mr. DJ invests Php 500,000 today, he can expect a certain annual payment for 6 years.
- The annual payment is calculated based on the investment amount, return percentage, and time period.
Desired Annual Payment
- Mr. DJ wants to receive an annual payment of Php 60,000 for 6 years.
- To achieve this, he needs to invest a certain amount today, considering a 6% return.
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