A sum of P1,000 is invested now and left for eight years at which time the principal is withdrawn. The interest that has accrued is left for another eight years. If the effective annual rate of interest is 5%, what willI be the withdrawal amount at the end of 16th year?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A sum of P1,000 is invested now and left for eight years at which time the
principal is withdrawn. The interest that has accrued is left for another eight
years. If the effective annual rate of interest is 5%, what willI be the withdrawal
amount at the end of 16th year?
P775
P500
D. P779
P706
Transcribed Image Text:A sum of P1,000 is invested now and left for eight years at which time the principal is withdrawn. The interest that has accrued is left for another eight years. If the effective annual rate of interest is 5%, what willI be the withdrawal amount at the end of 16th year? P775 P500 D. P779 P706
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