In 10 years, you plan to retire and buy a lotin the province. The lot you are looking at currently costs P100,000 and is expected to increase in value each year at a rate of 5 percent. Assuming you can earn 10 percent annually on your investments, how much must you invest at the end of each of the next 10 years to be able to buy the lot when you retire?
In 10 years, you plan to retire and buy a lotin the province. The lot you are looking at currently costs P100,000 and is expected to increase in value each year at a rate of 5 percent. Assuming you can earn 10 percent annually on your investments, how much must you invest at the end of each of the next 10 years to be able to buy the lot when you retire?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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In 10 years, you plan to retire and buy a lotin the province. The lot you are looking at currently
costs P100,000 and is expected to increase in value each year at a rate of 5 percent. Assuming
you can earn 10 percent annually on your investments, how much must you invest at the end
of each of the next 10 years to be able to buy the lot when you retire?
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