Ms. Amper Aconti owns a shoe store specializing in running shoes and needs P1,080,000 in 4 years to renovate her store. Find (a) the amount that must be invested today at 8% compounded annually to reach the amount needed and (b) the amount of interest earned.

Ms. Amper Aconti owns a shoe store specializing in running shoes and needs P1,080,000 in 4 years to renovate her store. Find (a) the amount that must be invested today at 8% compounded annually to reach the amount needed and (b) the amount of interest earned.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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Question

Ms. Amper Aconti owns a shoe store specializing in
running shoes and needs P1,080,000 in 4 years to
renovate her store. Find (a) the amount that must be
invested today at 8% compounded annually to reach
the amount needed and (b) the amount of interest
earned.

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