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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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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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