Ten years ago, you deposited P5400 per month. You made the deposit for 6 years and then stopped. 4 years later, you established a belts and nuts factory, and start withdrawing P2,300 every month for advertisement. Money is worth 6% compounded monthly. How many months can you withdraw before the money is exhausted? What is the present worth of the withdrawal

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Ten years ago, you deposited P5400 per month. You made the deposit for 6 years and then stopped. 4 years later, you established a belts and nuts factory, and start withdrawing P2,300 every month for advertisement. Money is worth 6% compounded monthly. How many months can you withdraw before the money is exhausted? What is the present worth of the withdrawal
SITUATION 4
Ten years ago, you deposited P5400 per month. You
made the deposit for 6 years and then stopped. 4 years
later, you established a belts and nuts factory, and start
withdrawing P2,300 every month for advertisement.
Money is worth 6% compounded monthly. How many
months can you withdraw before the money is
exhausted? What is the present worth of the withdrawal?
Transcribed Image Text:SITUATION 4 Ten years ago, you deposited P5400 per month. You made the deposit for 6 years and then stopped. 4 years later, you established a belts and nuts factory, and start withdrawing P2,300 every month for advertisement. Money is worth 6% compounded monthly. How many months can you withdraw before the money is exhausted? What is the present worth of the withdrawal?
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