Answered: What is the present worth of the…

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Accounting

What is the present worth of the withdrawal?(kindly give tye given, complete and detailed solution. Thank you)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 31P

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Question

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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 P2300 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?(kindly give tye given, complete and detailed solution. Thank you)

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