mpany owes Php 80,000 which includes the interest, to be paid one year from now by monthly deposits. The company deposits Php 2,000 at the end of the first month, Php 3,000 for the second month and increasing the deposits in each succeeding month by 50% until the 12th month. If the interest rate is 9% compounded monthly, will the total amount of deposits be enough to repay the debt? If not, how much more is needed?

mpany owes Php 80,000 which includes the interest, to be paid one year from now by monthly deposits. The company deposits Php 2,000 at the end of the first month, Php 3,000 for the second month and increasing the deposits in each succeeding month by 50% until the 12th month. If the interest rate is 9% compounded monthly, will the total amount of deposits be enough to repay the debt? If not, how much more is needed?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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