An instructor plans to retire in exactly one year and want an account that will pay him P25,000 a year for the next 15 years. Assuming a 6% annual effective interest rate, what is the amount he would need to deposit now? (The fund will be depleted after 15 years).Draw a cash flow diagram.
An instructor plans to retire in exactly one year and want an account that will pay him P25,000 a year for the next 15 years. Assuming a 6% annual effective interest rate, what is the amount he would need to deposit now? (The fund will be depleted after 15 years).Draw a cash flow diagram.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P
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An instructor plans to retire in exactly one year and want an account that will pay him P25,000 a
year for the next 15 years. Assuming a 6% annual effective interest rate, what is the amount he
would need to deposit now? (The fund will be depleted after 15 years).Draw a cash flow diagram.
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