Annual deposits were made in a fund earning 10% per annum. The first deposit was Php 20,000 and each deposit thereafter was 2,000 less than the preceding one. Determine the amount in the fund after the sixth deposit.

Annual deposits were made in a fund earning 10% per annum. The first deposit was Php 20,000 and each deposit thereafter was 2,000 less than the preceding one. Determine the amount in the fund after the sixth deposit.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Annual deposits were made in a fund earning 10% per annum. The first
deposit was Php 20,000 and each deposit thereafter was 2,000 less than
the preceding one. Determine the amount in the fund after the sixth
deposit.

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