Chantelle is forecasting the amount of plane tickets. Based on her study, it is likely that airplane tickets will increase 8% in each of the next four years. The cost of the plane ticket at the end of first year will be P2557. How much money would be placed in the savings account of the customers NOW to have money to pay a customer's travel home at the end of each year for the next four years? Assume that the savings account pays 5% annual interest. Note: Do not round in between solution. Final answer round to the nearest whole number. No need to put UOM (unit of measure).

Chantelle is forecasting the amount of plane tickets. Based on her study, it is likely that airplane tickets will increase 8% in each of the next four years. The cost of the plane ticket at the end of first year will be P2557. How much money would be placed in the savings account of the customers NOW to have money to pay a customer's travel home at the end of each year for the next four years? Assume that the savings account pays 5% annual interest. Note: Do not round in between solution. Final answer round to the nearest whole number. No need to put UOM (unit of measure).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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