What lump sum of money must be deposited in a bank account at present time so that P 500 monthly can be withdrawn for five years with the first withdrawal scheduled six years from today? Interest rate is 9% compounded quarterly. P 14,170 P 15,160 P 12,190 P 13,180

What lump sum of money must be deposited in a bank account at present time so that P 500 monthly can be withdrawn for five years with the first withdrawal scheduled six years from today? Interest rate is 9% compounded quarterly. P 14,170 P 15,160 P 12,190 P 13,180

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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Question

What lump sum of money must be deposited in a bank account at present time
so that P 500 monthly can be withdrawn for five years with the first withdrawal
scheduled six years from today? Interest rate is 9% compounded quarterly.
P 14,170
P 15,160
P 12,190
O P 13,180

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