D. At a certain interest rate the present values of the following two payment patterns. (i) P 200,000 at the end of 5 years plus P 500,000 at the end of 10 years; (ii) P 400,940 at the end of 5 years. At the same interest rate P 100,000 invested now plus P 120,000 invested at the en accumulate to X at the end of 10 years. Calculate X.
D. At a certain interest rate the present values of the following two payment patterns. (i) P 200,000 at the end of 5 years plus P 500,000 at the end of 10 years; (ii) P 400,940 at the end of 5 years. At the same interest rate P 100,000 invested now plus P 120,000 invested at the en accumulate to X at the end of 10 years. Calculate X.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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Transcribed Image Text:D. At a certain interest rate the present values of the following two payment patterns are equal:
(i) P 200,000 at the end of 5 years plus P 500,000 at the end of 10 years;
(ii) P 400,940 at the end of 5 years.
At the same interest rate P 100,000 invested now plus P 120,000 invested at the end of 5 years will
accumulate to X at the end of 10 years. Calculate X.
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