A young student wishes to go on a trip around Asia ten years from now. To prepare for such travel, he deposited now an amount of P 1,000 on an account on a bank that pays 8% compounded monthly. Then, he wishes to continue his deposits every end-of a month for ten years with increasing amounts. If his monthly deposits increases by 10% starting from the first to the last deposit, a) what amount would this student expects be on his account before the said travel, assuming no withdrawals take place? b) if after seven years of monthly deposits, the student wishes to withdrew all of his money on his account, how much would it be?

A young student wishes to go on a trip around Asia ten years from now. To prepare for such travel, he deposited now an amount of P 1,000 on an account on a bank that pays 8% compounded monthly. Then, he wishes to continue his deposits every end-of a month for ten years with increasing amounts. If his monthly deposits increases by 10% starting from the first to the last deposit, a) what amount would this student expects be on his account before the said travel, assuming no withdrawals take place? b) if after seven years of monthly deposits, the student wishes to withdrew all of his money on his account, how much would it be?

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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