Albert Einstein once noted that, “Compounding of interest is one of humanity’s greatest inventions”. To illustrate the mind-boggling effects of compounding, what amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly, to be able to accumulate P5,000,000 when you retire in 30 years?

Albert Einstein once noted that, “Compounding of interest is one of humanity’s greatest inventions”. To illustrate the mind-boggling effects of compounding, what amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly, to be able to accumulate P5,000,000 when you retire in 30 years?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...

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