A merchant puts in his P3,000.00 to a small business for a period of six years. With a given interest rate on the investment of 20% per year, compounded annually, how much money will he collect at the end of the sixth year?

A merchant puts in his P3,000.00 to a small business for a period of six years. With a given interest rate on the investment of 20% per year, compounded annually, how much money will he collect at the end of the sixth year?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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Question

A merchant puts in his P3,000.00 to a small business for a period of six years. With a given interest rate on the
investment of 20% per year, compounded annually, how much money will he collect at the end of the sixth year?
O a. P8,597.95
O b. P8,957.95
О с.
P8,975.95
O d. P8,795.95

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