Investment Options (General Math)

Situation:   You are a financial adviser. You are asked by one of your clients to help him invest his P100,000. You are required to present and discuss at least 4 investment options for him to choose from. The options to be presented should be available within the vicinity of Baguio City.

Option #1
In PNB (Philippines National Bank), If we invest P100000, the inrest rate is 3.875 and it is quarterly. The time for investing is 6 years. This is the the outcome of are investing.
P: P100000
r: 3.875%= 0.03875
t: 6 years
n: quarterly = 4


A= 100000(1+0.03875/4)^4(6)
A= 100000(1+0.0096875)^24
A= 100000(1.0096875)^24
A= 100000(1.260339399)
A= 126,033.9399

http://www.pnb.com.ph



Option#2

The BPI CATHOLIC VALUES GLOBAL EQUITY FEEDER FUND is a Philippine Peso denominated equity feeder Unit Investment Trust Fund established under the authority of the Bangko Sentral ng Pilipinas (“BSP”). The following is a summary of the Fund’s Plan Rules and Regulations (“Plan Rules”) and the terms and conditions governing the investments in the Fund:
1 Trustee
BPI Asset Management and Trust Corporation (BPI AMTC)
2 Fund Features
Name of the Fund: BPI Catholic Values Global Equity Feeder Fund Fund
Classification: Equity Feeder Fund
Target Fund: CBIS World Equity Fund
Base Currency: Philippine Peso
 Launch Date:           May 22, 2017
Minimum Investment Amount:       PHP 100,000
Minimum Transaction Amount:       PHP   50,000
Benchmark:           MSCI All Country World Index (PhP)
 Investor Type:           Aggressive  
Trust Fee           0.50% p.a.
Dealing             Daily up to 2:00PM  
Custodian Bank           HSBC, BNY
External Auditor           Isla Lipana & Co.


Target Fund Specifications
Investment Objective: The Target Fund seeks to achieve capital appreciation and outperform its primary benchmark index, the MSCI All Country World Index, by combining a number of different yet complementary investment approaches employed by the Sub-Investment Managers to invest in equity securities of medium to large capitalization issuers on a worldwide basis while minimizing downside risk by focusing on companies that exhibit a high internal rate of return and avoiding speculative investment.
Fund Classification: UCITS
Benchmark: MSCI All Country World Index
Domicile: Dublin, Ireland
Investment Manager: Christian Brothers Investment Services, Inc.
Custodian: BNY Mellon Trust Company (Ireland), Limited
Administrator: BNY Mellon Fund Services (Ireland), Limited
Transfer Agent: BNY Mellon Fund Services (Ireland), Limited
 Inception Date: February 2015
Country of Registration: Ireland
Share Class and ISIN: Class A (USD) (ISIN: IE00BKRTPD74)  




P: P100,000
r: 0.50%
t: 5 years

A=P(1+r)^t
A=100000(1+0.0050)^5
A=100000(1.0050)^5
A=100000(1.025251253)
A=102,525.1253


https://www.bpiexpressonline.com/p/1/672/bpi-investment-funds






Option#3
Security Bank


Issuer: SEC-Registered Philippine Corporations  
Tenor: 5-15 years  
Redemption Price: At par (or 100% of face value)  
Interest Rate: Prevailing Market Rate
(Subject to 20% final withholding tax
except for tax-exempt institutions)  
Interest Payment: Quarterly or Semi-Annually  
Minimum Investment: Php 50,000  

Quarterly
P: P100,000    
r: 20%=0.2
t: 5 years
n: 4 years

A=P(1+r/n)^nt
   =100000(1+(.2/4))^((4)(5))
   =100000(1+0.05)^20
   =100000(1.05)^20
   =100000(2.78596259)
A=278,596.259

Semi-annualy
P: P100,000
r: 20%
t: 5 years
n: 0.5 years

A=100000(1+(.2/0.5))^((0.5)(5))
   =100000(1+0.4)^2.5
   =100000(1.4)^2.5
   =100000(2.319103275)
A=231,910.3275

https://www.securitybank.com/personal/investments/fixed-income-securities/peso-corporate-bonds