Kate deposits P5,000 to her bank account every year when she was in highschool for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated ontime), she got a job that pays P250,000ayear. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year Problem 3: Kate deposits P5,000 to her bank account everyyear when she was in high school for four years to preparefor her college degree. She took an engineering course andsince then, she stopped depositing to her bank account. Rightafter graduation (she graduated on time), she got a job thatpays P250,000 a year. If she continues to deposit to the samebank account P50,000 every year for 10 years, calculate thefuture worth after 30 years if the deposits are made at theend of each year and the bank pays 2% interest per year

Future worth is computed by multiplying the existing value with a given interest rate.

Answered: Kate deposits P5,000 to her bank…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 16PROB

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Kate deposits P5,000 to her bank account every year when she was in highschool for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated ontime), she got a job that pays P250,000ayear. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year

Problem 3: Kate deposits P5,000 to her bank account every
year when she was in high school for four years to prepare
for her college degree. She took an engineering course and
since then, she stopped depositing to her bank account. Right
after graduation (she graduated on time), she got a job that
pays P250,000 a year. If she continues to deposit to the same
bank account P50,000 every year for 10 years, calculate the
future worth after 30 years if the deposits are made at the
end of each year and the bank pays 2% interest per year

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