0% compounded annually and after the last deposit the interest rate changed to 129% per year compounded ally. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How h would be the six annual deposits? P1,625 P1,451

0% compounded annually and after the last deposit the interest rate changed to 129% per year compounded ally. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How h would be the six annual deposits? P1,625 P1,451

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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Question

Write the solution including the CASH FLOW DIAGRAM

An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate
of 10% compounded annually and after the last deposit the interest rate changed to 12% per year compounded
annually. Ten years after his last deposit he made a withdrawal $7,000 per year for 8 years from his account. How
much would be the six annual deposits?
(А) Р1,625
в) Р1,451
c) P1,911
P1,738

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