John deposited P500,000 on his bank account. Due to an emergency, he withdrew P350,000 after 3 years and 2 months from the day of his first deposit. He added P50,000 after 7 months of his withdrawal. If the interest rate is 8% compounded quarterly, what is the future account balance after 11 months? Find: Cash Flow Diagram Solution Final Answer
John deposited P500,000 on his bank account. Due to an emergency, he withdrew P350,000 after 3 years and 2 months from the day of his first deposit. He added P50,000 after 7 months of his withdrawal. If the interest rate is 8% compounded quarterly, what is the future account balance after 11 months? Find: Cash Flow Diagram Solution Final Answer
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 7CE
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Question
Effective rate of interest
I. John deposited P500,000 on his bank account. Due to an emergency, he withdrew P350,000 after 3 years and 2 months from the day of his first deposit. He added P50,000 after 7 months of his withdrawal. If the interest rate is 8% compounded quarterly, what is the future account balance after 11 months?
Find:
- Cash Flow Diagram
- Solution
- Final Answer
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