Peter graduated at the end of 2017 and he receivedthen a gift of 12 000 € which he deposited on his account.He has started to work and saves some more money.He will save 5 400 € annually.The first deposit was made at the end of 2019.The last deposit he plans to make at the end of year 2026.His account's interest rate is 1.55 %, and the source tax rate is 30 %.How much has he saved by the end of 2030?There are no additional deposis made after year 2026.ANSWER

Amount received as gift = 12,000 Annual saving = 5,400 Interest rate = 1.55% Tax rate = 30%

Answered: Peter graduated at the end of 2017 and…

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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