A parent on the day the child is born wishes to determine what lump sum would have to be paid into an account bearing interest at 5% compounded annually, in order to withdraw P20,000 each on the child's 18th, 19th, 20th and 21st birthdays. How much is the lump sum amount?
A parent on the day the child is born wishes to determine what lump sum would have to be paid into an account bearing interest at 5% compounded annually, in order to withdraw P20,000 each on the child's 18th, 19th, 20th and 21st birthdays. How much is the lump sum amount?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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A parent on the day the child is born wishes to determine what lump sum would have to be paid into an account bearing interest at 5% compounded annually, in order to withdraw P20,000 each on the child's 18th, 19th, 20th and 21st birthdays. How much is the lump sum amount?
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