On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year compounded annually. He withdraws ₱80 at the end of the first year, ₱90 at the end of the second year, and the remaining balance at the end of the third year. a. How much does he withdraw at the end of the third year? b. What is the net cash flow? c.How much better off, in terms of net cash flow, would he have been if he had not made the withdrawals at the ends of years one and two?
On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year compounded annually. He withdraws ₱80 at the end of the first year, ₱90 at the end of the second year, and the remaining balance at the end of the third year. a. How much does he withdraw at the end of the third year? b. What is the net cash flow? c.How much better off, in terms of net cash flow, would he have been if he had not made the withdrawals at the ends of years one and two?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year compounded annually. He withdraws ₱80 at the end of the first year, ₱90 at the end of the second year, and the remaining balance at the end of the third year.
a. How much does he withdraw at the end of the third year?
b. What is the net cash flow?
c.How much better off, in terms of net cash flow, would he have been if he had not made the withdrawals at the ends of years one and two?
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