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D. A man deposits P50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate of 6.5% per year continues for this period, will this effectively protect the purchasing power of the original principal? CO2 9. What is the effective rate? a. 78% a.36% c. 4% d. none of the above CO3 10. Compute for the required value of F to check if the given inflation rate continues for this period, will this effectively protect the purchasing power of the original principal? a.49,000 c. 49,225 a. 78,00 d. none of the above

D. A man deposits P50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate of 6.5% per year continues for this period, will this effectively protect the purchasing power of the original principal? CO2 9. What is the effective rate? a. 78% a.36% c. 4% d. none of the above CO3 10. Compute for the required value of F to check if the given inflation rate continues for this period, will this effectively protect the purchasing power of the original principal? a.49,000 c. 49,225 a. 78,00 d. none of the above

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 3STP
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D. A man deposits P50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate of 6.5% per year continues for this period, will this effectively protect the purchasing power of the original principal? CO2 9. What is the effective rate? d. none of the above CO3 10. Compute for the required value of F to check if the given inflation rate continues for this period, will a. 78% a.36% C. 4% this effectively protect the purchasing power of the original principal? c. 49,225 a. 78,00 a.49,000 d. none of the above
Transcribed Image Text:D. A man deposits P50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate of 6.5% per year continues for this period, will this effectively protect the purchasing power of the original principal? CO2 9. What is the effective rate? d. none of the above CO3 10. Compute for the required value of F to check if the given inflation rate continues for this period, will a. 78% a.36% C. 4% this effectively protect the purchasing power of the original principal? c. 49,225 a. 78,00 a.49,000 d. none of the above
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