How much should she invest at the end of every year in an investment fund that earns 9% annually to have enough money to buy the car upon graduation?
How much should she invest at the end of every year in an investment fund that earns 9% annually to have enough money to buy the car upon graduation?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 28P
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1. Your sister is an incoming college freshman taking up a four-year course. Suppose that she wants to purchase a car immediately after graduating from college which will cost P750,000. How much should she invest at the end of every year in an investment fund that earns 9% annually to have enough money to buy the car upon graduation?
2. Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%.
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