Your parents wanted to establish a travel fund that will provide them an annual travel 1. allowance of P250 000 for 10 years when they retire. How much should they invest t a trust fund that earns 4% interest compounded monthly if they are to retire in 5 years?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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Solve the following problems on a sheet of paper.
What Have I Learned So Far?
Solve the following problems on a sheet of paper.
Your parents wanted to establish a travel fund that will provide them an annual traver
1.
allowance of P250 000 for 10 years when they retire, How much should they invest in a
trust fund that earns 4% interest compounded monthly if they are to retire in 5 years?
2. How much should a mother invest now for a long-term investment that offers 10% interest
compounded monthly if she desires to provide her son a 5-year college fund of P120 000
annually, 6 years from now?
Transcribed Image Text:Solve the following problems on a sheet of paper. What Have I Learned So Far? Solve the following problems on a sheet of paper. Your parents wanted to establish a travel fund that will provide them an annual traver 1. allowance of P250 000 for 10 years when they retire, How much should they invest in a trust fund that earns 4% interest compounded monthly if they are to retire in 5 years? 2. How much should a mother invest now for a long-term investment that offers 10% interest compounded monthly if she desires to provide her son a 5-year college fund of P120 000 annually, 6 years from now?
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