Today, you invest P 100,000 into a fund that pays 25% interest compounded annually. Three years later you borrow P 50,000 from a bank at 20% annual compounded interest and invest in the fund. Two years later you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal, you are going to take P 20,000 per year out of the fund. After five withdrawals, you withdrawn the balance in the fund. How much was withdrawn? P 1,520,257 O P1,320,257 O P1,220,257 O P1,420,257

Today, you invest P 100,000 into a fund that pays 25% interest compounded annually. Three years later you borrow P 50,000 from a bank at 20% annual compounded interest and invest in the fund. Two years later you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal, you are going to take P 20,000 per year out of the fund. After five withdrawals, you withdrawn the balance in the fund. How much was withdrawn? P 1,520,257 O P1,320,257 O P1,220,257 O P1,420,257

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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