A P5,000 savings account earning 8% effective interest was opened five years ago. If another savings account is started today at 12% interest compounded quarterly, determine the amount required such that both accounts will be equal seven years from now.

A P5,000 savings account earning 8% effective interest was opened five years ago. If another savings account is started today at 12% interest compounded quarterly, determine the amount required such that both accounts will be equal seven years from now.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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C) A P5,000 savings account earning 8% effective interest was opened five years ago. If another savings account is started today at 12% interest compounded quarterly, determine the amount required such that both accounts will be equal seven years from now.

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