Answer:
1) 202.52
2) P107089
Step-by-step explanation:
Compound interest is calculated as
A = P (1 + r/n)^(nt), where
A = compounded interest
P = present value
r = interest
n = number of times interest applied
t = time taken
A = 200 (1 + 0.25%/30)^(30 * 5)
A = 200 (1 + 8.3*10^-5)^150
A = 200 * 1.0126
A = 202.52
Present Value Annuity Due is usually given by the formula
P = c*((1-(1+ i)^(-n))/i)*(1 + i ), where
P is the present value
C is the Cash flow per period
i is the interest rate and
n is the number of payments
P = 10000*((1-(1+ 12/1200)^(-1*12))/(12/1200))*(1+12/1200)
P = 113676
Also, it's worthy of note that
Effective Annual Rate = [(1 +stated rate/no. of compounding periods) ^no of compounding periods - 1]* 100
EAR = ((1+12/(12*100))^12-1)*100
EAR = 12.68%
And lastly, the
Future value = present value*(1+ rate)^time
113676 = Present value*(1+0.1268)^0.5
Present Value = 113676 / 1.1268^0.5
Present Value = 113676 / 1.0615
Present value = 107089
