Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow P50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking P20,000 per year out of the fund. How much was withdrawn? Draw cash flow diagram
Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow P50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking P20,000 per year out of the fund. How much was withdrawn? Draw cash flow diagram
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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manual computation with
Transcribed Image Text:Today, you invest P100,000 into a fund
that pays 25% interest compounded
annually. Three years later, you borrow
P50,000 from a bank at 20% annual
interest and invest in the fund. Two
years later, you withdraw enough
money from the fund to repay the bank
loan and all interest due on it. Three
years from this withdrawal you start
taking P20,000 per year out of the
fund. How much was withdrawn?
Draw cash flow diagram
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