4) Three years from now, Mr. Dela Cruz wants to start a business. In order to do that, he estimated that he needs initial capital of Php100,000. He can deposit an amount today in one of the following accounts: Account #1: offers 1.5% annual compound interest rate Account #2: offers a 1.4% annual interest rate compounded quarterly Account #3: offers a 1.1% annual interest rate compounded monthly Hint: Use the formula P- for annually (1r P-A for quarterly and monthly where m stands for the number of months (1+r) Which of the accounts will require the least deposit?
4) Three years from now, Mr. Dela Cruz wants to start a business. In order to do that, he estimated that he needs initial capital of Php100,000. He can deposit an amount today in one of the following accounts: Account #1: offers 1.5% annual compound interest rate Account #2: offers a 1.4% annual interest rate compounded quarterly Account #3: offers a 1.1% annual interest rate compounded monthly Hint: Use the formula P- for annually (1r P-A for quarterly and monthly where m stands for the number of months (1+r) Which of the accounts will require the least deposit?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 2STP
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![4) Three years from now, Mr. Dela Cruz wants to start a business. In order to do that, he estimated that he needs initial capital of
Php100,000. He can deposit an amount today in one of the following accounts:
Account #1: offers 1.5% annual compound interest rate
Account #2; offers a 1.4% annual interest rate compounded quarterly
Account #3: offers a 1.1% annual interest rate compounded monthly
Hint: Use the formula P=4 for annually
(1+r)
A for quarterly and monthly where m stands for the number of months
(1+r)
Which of the accounts will require the least deposit?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd68b8a29-e661-4616-af1f-e5865dfe77a7%2F060c83d6-e074-4f80-9f4a-d1d7b693438c%2Fhlr26q_processed.png&w=3840&q=75)
Transcribed Image Text:4) Three years from now, Mr. Dela Cruz wants to start a business. In order to do that, he estimated that he needs initial capital of
Php100,000. He can deposit an amount today in one of the following accounts:
Account #1: offers 1.5% annual compound interest rate
Account #2; offers a 1.4% annual interest rate compounded quarterly
Account #3: offers a 1.1% annual interest rate compounded monthly
Hint: Use the formula P=4 for annually
(1+r)
A for quarterly and monthly where m stands for the number of months
(1+r)
Which of the accounts will require the least deposit?
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