Blithe Geezer, a streetwear startup, plans to launch a massive first collection on its opening. Considering the owner's timeframe, he wants to open his brand after 10 years, at which time he needs P350,000 capital. If the owner decides to deposit a certain amount on the 5" year and plans to increase his deposit by 10% per quarter for 5 years, how much is his initial deposit if money may be deposited at 4% compounded annually?
Blithe Geezer, a streetwear startup, plans to launch a massive first collection on its opening. Considering the owner's timeframe, he wants to open his brand after 10 years, at which time he needs P350,000 capital. If the owner decides to deposit a certain amount on the 5" year and plans to increase his deposit by 10% per quarter for 5 years, how much is his initial deposit if money may be deposited at 4% compounded annually?
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
Section: Chapter Questions
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Transcribed Image Text:2. Blithe Geezer, a streetwear startup, plans to launch a massive first collection on its
opening. Considering the owner's timeframe, he wants to open his brand after 10 years,
at which time he needs P350,000 capital. If the owner decides to deposit a certain amount
on the 5th year and plans to increase his deposit by 10% per quarter for 5 years, how much
is his initial deposit if money may be deposited at 4% compounded annually?
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