. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.) At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.) How much difference would it make if the payments were made at the beginning of the month rather than at the end?
. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.) At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.) How much difference would it make if the payments were made at the beginning of the month rather than at the end?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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I need your help tutor!
This is how you answer the problem
(a) Identify the Given and the Unknown or what is being asked in the problem
(b)Provide the formula to be used
(c)Plug in the given in the formula if there is a derivation of the formula please show it
(d)Box the final answer. however, the final answer is already included in the problem, what you need to do is to match your answer and the answer in the book. Because in the book they only provide the answer but not the solution.
Problem:
Transcribed Image Text:Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.
a.) At 3% compounded monthly, how much will you have accumulated at the end of 5 years?
b.) How much difference would it make if the payments were made at the beginning of the month
rather than at the end?
Answer: a.) F = P6,464.67, b.) F value difference = P196.63
%3D
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