1. You are planning to save enough money to buy a brand new car five years from now. You are setting a budget of Php 1,000,000 for this purchase. Your plan is to accumulate the amount by making three savings deposits at an interest rate of 10%.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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STRICTLY SKETCH OF GRAPH THE CASH FLOW DIAGRAM. (Economics)
SUBJECT: ENGINEERING ECONOMICS
INSTRUCTION: Answer the following questions by
including the appropriate cash flow diagrams, solution,
and final answer.
1. You are planning to save enough money to buy a
brand new car five years from now. You are setting a
budget of Php 1,000,000 for this purchase. Your plan is to
accumulate the amount by making three savings
deposits at an interest rate of 10%.
Deposit 1: Deposit Php 100,000 today,
Deposit 2: Deposit Php 150,000 two years from now,
Deposit 3: Deposit an amount Php X three years from
now. How much do you need to invest in year three to
ensure that you have the necessary fund to buy the new
car at the end of year five?
Transcribed Image Text:SUBJECT: ENGINEERING ECONOMICS INSTRUCTION: Answer the following questions by including the appropriate cash flow diagrams, solution, and final answer. 1. You are planning to save enough money to buy a brand new car five years from now. You are setting a budget of Php 1,000,000 for this purchase. Your plan is to accumulate the amount by making three savings deposits at an interest rate of 10%. Deposit 1: Deposit Php 100,000 today, Deposit 2: Deposit Php 150,000 two years from now, Deposit 3: Deposit an amount Php X three years from now. How much do you need to invest in year three to ensure that you have the necessary fund to buy the new car at the end of year five?
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