Cedie is saving in a bank in order to purchase a new house in six years. He anticipates that the price of the house will be PHP 1,500,000 by then. He saves his money into an account paying 5.5% effectively. At the beginning of this year, he deposited PHP 100,000. He plans to deposit PHP 200,000 at the beginning of the second year and PhP 150,000 at the beginning of each succeeding years. How much more will he need at the end of six years in order to make the purchase?

Cedie is saving in a bank in order to purchase a new house in six years. He anticipates that the price of the house will be PHP 1,500,000 by then. He saves his money into an account paying 5.5% effectively. At the beginning of this year, he deposited PHP 100,000. He plans to deposit PHP 200,000 at the beginning of the second year and PhP 150,000 at the beginning of each succeeding years. How much more will he need at the end of six years in order to make the purchase?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 14P

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