A man decides to deposit a certain amount of money on his son's 10th birthday, which will be equivalent to P280,000.00 with today's purchasibg power of the peso on his son's 25th birthday when he will start his marriage life. If the bank pays 5.5% compounded annually and the rate of inflation is 8.7% compounded annually, how much should be deposited by the man? Using this formula F=P(1+f)^n.
A man decides to deposit a certain amount of money on his son's 10th birthday, which will be equivalent to P280,000.00 with today's purchasibg power of the peso on his son's 25th birthday when he will start his marriage life. If the bank pays 5.5% compounded annually and the rate of inflation is 8.7% compounded annually, how much should be deposited by the man? Using this formula F=P(1+f)^n.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 13E
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A man decides to deposit a certain amount of money on his son's 10th birthday, which will be equivalent to P280,000.00 with today's purchasibg power of the peso on his son's 25th birthday when he will start his marriage life. If the bank pays 5.5% compounded annually and the rate of inflation is 8.7% compounded annually, how much should be deposited by the man?
Using this formula F=P(1+f)^n.
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