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1. Car loan Planning to give his son a car as a gift when he graduated from college 2 years from now, Adam decided to set aside a fund to enable him to pay the expected monthly amortization of P 21,500.00 every month for 3 years. If a bank offers to pay an interest of 7.5% compounding monthly, how much should be set aside in order to achieve his plan? Sketch a time diagram or timeline for this problem

1. Car loan Planning to give his son a car as a gift when he graduated from college 2 years from now, Adam decided to set aside a fund to enable him to pay the expected monthly amortization of P 21,500.00 every month for 3 years. If a bank offers to pay an interest of 7.5% compounding monthly, how much should be set aside in order to achieve his plan? Sketch a time diagram or timeline for this problem

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.17E
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1. Car loan

Planning to give his son a car as a gift when he graduated from college 2 years from now, Adam decided to set aside a fund to enable him to pay the expected monthly amortization of P 21,500.00 every month for 3 years. If a bank offers to pay an interest of 7.5% compounding monthly, how much should be set aside in order to achieve his plan? Sketch a time diagram or timeline for this problem

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