Soledad decides to have P2,100 at the end of each quarter, which is the amount paid into her retirement plan by the company where she works. If she chooses an investment fund that guarantees 7% per year compounded quarterly, how much will she have in 12 years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Question

Soledad decides to have P2,100 at the end of each quarter, which is the amount paid into her retirement plan by the company where she works. If she chooses an investment fund that guarantees 7% per year compounded quarterly, how much will she have in 12 years? A P50,000 loan is payable in 3 years. To repay the loan, the debtor must pay an amount every months with an interest rate of 6% compounded semi-annually. How much should he pay every 6months? Gina has decided to make quarterly payments of P8,200 at the end of each quarter for 10 years into an investment that he thinks will yield 10% compounded quarterly, what lump sum deposited today that will result to the same future value?

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