Eleanor makes year-end deposits of P500.00 the first year, P550.00 the second year, P605.00 the third year, and so on, increasing the next year's deposit by 10% of the deposit in the preceding year until the end of the tenth year. Ronald makes equal year-end deposits of P700.00 each year for 10 years. If interest on both funds is 12% compounded annually, who will be able to save more at the end of the ten years and by how much?
Eleanor makes year-end deposits of P500.00 the first year, P550.00 the second year, P605.00 the third year, and so on, increasing the next year's deposit by 10% of the deposit in the preceding year until the end of the tenth year. Ronald makes equal year-end deposits of P700.00 each year for 10 years. If interest on both funds is 12% compounded annually, who will be able to save more at the end of the ten years and by how much?
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
Problem 1PS
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- Eleanor makes year-end deposits of P500.00 the first year, P550.00 the second year, P605.00 the third year, and so on, increasing the next year's deposit by 10% of the deposit in the preceding year until the end of the tenth year. Ronald makes equal year-end deposits of P700.00 each year for 10 years. If interest on both funds is 12% compounded annually, who will be able to save more at the end of the ten years and by how much?
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