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The owner of a company plans to expand his firm 6 years from now so he plans to make quarterly deposits of P100,000 in a bank account for 5 years. If the deposits will be made at the start of the periods, how much money can he withdraw to start the expansion by the end of the 6th year if the money earns an interest of 15% compounded semi-annually? Show complete solution with cash flow diagram

The owner of a company plans to expand his firm 6 years from now so he plans to make quarterly deposits of P100,000 in a bank account for 5 years. If the deposits will be made at the start of the periods, how much money can he withdraw to start the expansion by the end of the 6th year if the money earns an interest of 15% compounded semi-annually? Show complete solution with cash flow diagram

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 7CE
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The owner of a company plans to expand his firm 6 years from now so he plans to make

quarterly deposits of P100,000 in a bank account for 5 years. If the deposits will be

made at the start of the periods, how much money can he withdraw to start the

expansion by the end of the 6th year if the money earns an interest of 15% compounded

semi-annually?

Show complete solution with cash flow diagram

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