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Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at the age of 8. The amounts are as follows: P50,000.00 for the first 7 years, P85,000.00 for the next 5 years and P200,000.00 for the remaining years. If the rate is 17% compounded per year, what amount should he deposit now?

Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at the age of 8. The amounts are as follows: P50,000.00 for the first 7 years, P85,000.00 for the next 5 years and P200,000.00 for the remaining years. If the rate is 17% compounded per year, what amount should he deposit now?

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 14E
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Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at the age of 8. The amounts are as follows: P50,000.00 for the first 7 years, P85,000.00 for the next 5 years and P200,000.00 for the remaining years. If the rate is 17% compounded per year, what amount should he deposit now?

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