Question 15In order to fund the renovation of her condounit, Stella estimates that Php350,000 will beneeded in 4.5 years. She decides to deposit a sumevery 3 months with interest earned at 8%converted quarterly. What should be Stella'squarterly deposit?Php22,376.58Php23,345.74Php16,345.74Php19,444.4415

Information Provided: Future value = 350,000 Period = 4.5 years Interest rate = 8%

Answered: converted quarterly. What should be…

Business

Finance

converted quarterly. What should be Stella's quarterly deposit?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.7AP

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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