AN INSTRUCTOR PLANS TO RETIRE IN ONE YEAR AND WANTS AN ACCOUNT THAT WILL PAY HIM P25,000.00 A YEAR FOR THE NEXT 15 YEARS. ASSUMING 6% ANNUAL EFFECTIVE INTEREST RATE, WHAT IS THE AMOUNT HE WOULD NEED TO DEPOSIT NOW? (THE FUND WILL BE DEPLETED AFTER 15 YEARS) a.P248,500.00 b.P250,400.00 c.P249,000.00 d.P242,806.00
AN INSTRUCTOR PLANS TO RETIRE IN ONE YEAR AND WANTS AN ACCOUNT THAT WILL PAY HIM P25,000.00 A YEAR FOR THE NEXT 15 YEARS. ASSUMING 6% ANNUAL EFFECTIVE INTEREST RATE, WHAT IS THE AMOUNT HE WOULD NEED TO DEPOSIT NOW? (THE FUND WILL BE DEPLETED AFTER 15 YEARS) a.P248,500.00 b.P250,400.00 c.P249,000.00 d.P242,806.00
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 12E
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AN INSTRUCTOR PLANS TO RETIRE IN ONE YEAR AND WANTS AN ACCOUNT THAT WILL PAY HIM P25,000.00 A YEAR FOR THE NEXT 15 YEARS. ASSUMING 6% ANNUAL EFFECTIVE INTEREST RATE, WHAT IS THE AMOUNT HE WOULD NEED TO DEPOSIT NOW? (THE FUND WILL BE DEPLETED AFTER 15 YEARS)
a.P248,500.00
b.P250,400.00
c.P249,000.00
d.P242,806.00
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