1. Lottie wants to have a fund that would pay annual payments to her son of Php200,000 a year forever. How much does she need to deposit today to achieve her goal if the fund can earn 5 percent interest?

1. Lottie wants to have a fund that would pay annual payments to her son of Php200,000 a year forever. How much does she need to deposit today to achieve her goal if the fund can earn 5 percent interest?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 1WNG

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Question

1. Lottie wants to have a fund
that would pay annual payments to
her son of Php200,000 a year forever.
How much does she need to deposit
today to achieve her goal if the fund
can earn 5 percent interest?

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