Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and other things worth P2M. What should be his deposits in the last 3 years?

Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and other things worth P2M. What should be his deposits in the last 3 years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 8PROB

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