Under a new company employees savings plan, an employee will pay P 250 at the beginning of each month for 5 years, and the management guarantees accumulation of the savings at 6% compounded annually. How much will be the amount of the savings plan of each employee after 5 years?

Under a new company employees savings plan, an employee will pay P 250 at the beginning of each month for 5 years, and the management guarantees accumulation of the savings at 6% compounded annually. How much will be the amount of the savings plan of each employee after 5 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 4P

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Under a new company employees savings plan, an employee will pay P 250 at the beginning
of each month for 5 years, and the management guarantees accumulation of the savings at 6%
compounded annually. How much will be the amount of the savings plan of each employee
after 5 years?
00
Select one:
O a. P 66,780
O b.P 64,535
Oc. P 69,540
Od P 68,620

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