Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following years up to 4 years. Find the equivalent future worth of the deposits if it earns on an account @ 10% compounded annually.

Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following years up to 4 years. Find the equivalent future worth of the deposits if it earns on an account @ 10% compounded annually.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

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Question

Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following
years up to 4 years. Find the equivalent future worth of the deposits if it earns on an account @ 10%
compounded annually.

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Introduction - Basic Details

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Step 2 - Identifying the Compounded Interest of Year wise basis

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Step 3 - Table Showing the Year on Year Deposit and Interest

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