A manufacturing firm wishes to give each 80 employees a holiday bonus. How much(P) is needed to invest monthly for a year at 12% nominal interest rate compounded monthly, so each employee will receive a P2500 bonus?

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 30P
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A manufacturing firm wishes to give each 80 employees a holiday bonus. How much(P) is needed to
invest monthly for a year at 12% nominal interest rate compounded monthly, so each employee will
receive a P2500 bonus?
Transcribed Image Text:A manufacturing firm wishes to give each 80 employees a holiday bonus. How much(P) is needed to invest monthly for a year at 12% nominal interest rate compounded monthly, so each employee will receive a P2500 bonus?
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