Miranda is a 10 years old at the time an amount of 20,000 Php was invested at a rate of 8.5% compounded quarterly and she wish to withdraw the money to use it on her 18th birthday. how many times is compounding done in a year? then how much money is available on her 18th birthday party?

Miranda is a 10 years old at the time an amount of 20,000 Php was invested at a rate of 8.5% compounded quarterly and she wish to withdraw the money to use it on her 18th birthday. how many times is compounding done in a year? then how much money is available on her 18th birthday party?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 14P

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Question

Miranda is a 10 years old at the time an amount of 20,000 Php was invested at a rate of 8.5% compounded quarterly and she wish to withdraw the money to use it on her 18th birthday.

how many times is compounding done in a year?

then how much money is available on her 18th birthday party?

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