1 May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15 years, she makes an additional deposit of X. At the end of 20 years, May uses the accumulated balance in the fund to buy a perpetuity- immediate with annual payments of PhP 30,000 per year for 10 years, and PhP 15,000 per year thereafter. Interest is credited at an annual effective rate of 6%. Calculate X.

1 May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15 years, she makes an additional deposit of X. At the end of 20 years, May uses the accumulated balance in the fund to buy a perpetuity- immediate with annual payments of PhP 30,000 per year for 10 years, and PhP 15,000 per year thereafter. Interest is credited at an annual effective rate of 6%. Calculate X.

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 13E

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