P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 2 years just after the last deposit. (use 2 decimal places for your final answer)

P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 2 years just after the last deposit. (use 2 decimal places for your final answer)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

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P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11%
as the interest rate compounded semi-annually, compute how much is in the fund at the end
of 4 2 years just after the last deposit. (use 2 decimal places for your final answer)

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