Answered: A bank deposit of P10,000 earns 3.5% pa…

A bank deposit of P10,000 earns 3.5% pa compounded quarterly. If inflation is at 5% per year, what will be the real value of the deposit in 3 years? Select the correct response:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Question

A bank deposit of P10,000 earns 3.5% pa
compounded quarterly. If inflation is at 5% per
year, what will be the real value of the deposit
in 3 years?
Select the correct response:
O P9,590
O P10,427
O P10,441
O P9,578
O P9,560

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