Solve the following problems. You must show all your solutions -Draw the cash flow diagram for each problem -use interest rate with five decimal places. -Box your final answer and upload the picture of your complete solution. 1. A woman is considering giving a quarterly endowment to a university in order to provide payments of P5,000 and decreasing by 4% at the end of each quarter during a year. If the interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bimonthly payment can be repeated forever?
Solve the following problems. You must show all your solutions -Draw the cash flow diagram for each problem -use interest rate with five decimal places. -Box your final answer and upload the picture of your complete solution. 1. A woman is considering giving a quarterly endowment to a university in order to provide payments of P5,000 and decreasing by 4% at the end of each quarter during a year. If the interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bimonthly payment can be repeated forever?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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Solve the following problems. You must show all your solutions -Draw the cash flow diagram for each problem -use interest rate with five decimal places. -Box your final answer and upload the picture of your complete solution.
1. A woman is considering giving a quarterly endowment to a university in order to provide payments of P5,000 and decreasing by 4% at the end of each quarter during a year. If the interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bimonthly payment can be repeated forever?
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