Rainer is planning to invest Php80,000. Bank A is offering 6% compounded swmi-anually while bank B is offering 5% compounded monthly. If he plans to invest this amount for 5 years:a. Solve for the maturity value of 80,000 in bank A (round off your answer in 2 decimal places) _______b. Solve for the maturity valus of 80,000 in bank B. (round off your answer in 2 decimal places) _______c. In which bank should he invest? Bank A or Bank B? _______ Rainer is planning to invest Php80,000. Bank A is offering 6% compoundedsemi-annually while bank B is offering 5% compounded monthly. If heplans to invest this amount for 5 years:a. solve for the maturity value of 80,000 in bank A (round off your answerin 2 decimal places)b. solve for the maturity value of 80,000 in bank B (round off your answerin 2 decimal places)c. in which bank should he invest? Bank A or Bank B?

Therefore, the maturity value if the investment done in Bank A is Php107,513.31.

Answered: Rainer is planning to invest Php80,000.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...

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Rainer is planning to invest Php80,000. Bank A is offering 6% compounded swmi-anually while bank B is offering 5% compounded monthly. If he plans to invest this amount for 5 years: a. Solve for the maturity value of 80,000 in bank A (round off your answer in 2 decimal places) _______ b. Solve for the maturity valus of 80,000 in bank B. (round off your answer in 2 decimal places) _______ c. In which bank should he invest? Bank A or Bank B? _______

Rainer is planning to invest Php80,000. Bank A is offering 6% compounded
semi-annually while bank B is offering 5% compounded monthly. If he
plans to invest this amount for 5 years:
a. solve for the maturity value of 80,000 in bank A (round off your answer
in 2 decimal places)
b. solve for the maturity value of 80,000 in bank B (round off your answer
in 2 decimal places)
c. in which bank should he invest? Bank A or Bank B?

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