A father is saving money 5 years before his son will be going to college. Upon opening he deposited 7,000Pesos to an account that has 4% interest compounded annually. After a year he deposited 11,000Pesos, then on the second and third year he puts 13,000Pesos and 4,000Pesos respectively. If after 5 years they withdrew the account how much would they receive? * 40,335 Pesos 34,333 Pesos 30,333 Pesos 45,345 Pesos

A father is saving money 5 years before his son will be going to college. Upon opening he deposited 7,000Pesos to an account that has 4% interest compounded annually. After a year he deposited 11,000Pesos, then on the second and third year he puts 13,000Pesos and 4,000Pesos respectively. If after 5 years they withdrew the account how much would they receive? * 40,335 Pesos 34,333 Pesos 30,333 Pesos 45,345 Pesos

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Jack plans to expand his firm 6 years from now so he plans to makequarterly deposits of P100,000 in a bank account for 5 years. If the deposits will bemade at the start of the periods, how much money can he withdraw to start theexpansion by the end of the 6th year if the money earns an interest of 15% compoundedsemi-annually? Show full solution
A young man has decided to go into business at the age 40. He wishes to accumulate P 200,000.00 at that age. On his twenty-fifth birthday he deposits a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be? ANS. P 3,074.85
PLEASE SOLVE MANUALLYTHANK YOUMr. Jones borrowed P 20,000 from a lending firm and an additional P 5,000 after 2 months. He paid P 10,000 after 1 year and an additional payment of P 12,000 at the 18th month. The lending firm demanding Mr. Jones to pay all at the end of 2 years. If interest is 12% compounded monthly, how much will Mr. Jones pay at the end of 2 years. Note: The reference of all the time is the time P20,000 is borrowed.
At 3% interest rate, how much should you invest today to be able to withdraw P4,162 annually for 7 years?
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,000 is set aside each year and invested in a savings account that pays 10% interest per year, compounded continuously. Solve, a. Determine the accumulated savings in this account at the end of 30 years. In Part (a), suppose that an annuity will be with drawn from savings that have been accumulated at the EOY 30. The annuity will extend from the EOY 31 to the EOY 40. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change?
John deposits 95,000 pesos every year end in an investment which pays a nominal annual rate of 7.65% compounded continuously. Find the difference between his accumulated investment and his total actual deposit by the end of 13 years.
a man inherited a regular endowment of p100,000 every end of 3 months for 10 years. however, he may choose to get a single lump of 3702939.8 at the end of 4 years. how much is this lump sum if the cost of money is 14% compounded quarterly?
Ryan Reyn old deposited $1200 into an account with a 4% yearly compounding rate for two years. The money is then taken out after two years and deposited in a different bank at a rate of 5% compounded annually for four years. What is the second account's balance now in Philippine peso, four years later? Use 1USD=55.66php
How much money should be deposited each year for 10 years starting 1 year from today, if you wish to withdraw $5359 each year for 9 years, beginning at the end of 16 years? Let i=12% per year.
Complete solution needed Eleanor makes year-end deposits of P5000 the first year, P5500 the second year, P6050 the third year, and so on, increasing the next year's deposit by 10% of the deposit in the preceding year until the end of the tenth year. Ronald deposits Php9,100 during the first year, Php 8,600 in the second year, and amounts decreasing by Php 500 every year. If interest on both funds is 12% compounded annually, who will be able to save more at the end of the 10 years? Draw the cash flow diagram for both situations.
Need Solutions ASAP... A 10-year loan is available from a relative at 10% simple interest. The amount borrowed will be $2000, and all interest and principal will be repaid at the end of year 10. How much more interest would be paid if the interest were compounded? (Ans: $1187)
A.) A man pays his debt in the following manner: P1000 after 1 yr., and decreases P77 every year up to 6th yr. Find the accumulated amount of these payments at the rate of 15% compounded annually. B.) The annual maintenance cost of a generator is P834 after 1 year and it is estimated to increase by 10% each year for the subsequent 7 years. Find the present worth of the maintenance cost if the rate of interest is 15% compounded annually. Note: please solve it mannually without using computer so that we could understand how to solve it