A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The fund will grant P120,000 each year for the first 5 years, P 30,000 per quarter for the next 5 years and P10,000 each month thereafter. The scholarship will start one year after the fund is established. What is the amount of the donation if i = 12% compounded annually?
A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The fund will grant P120,000 each year for the first 5 years, P 30,000 per quarter for the next 5 years and P10,000 each month thereafter. The scholarship will start one year after the fund is established. What is the amount of the donation if i = 12% compounded annually?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1.
A fund is to be donated
by a wealthy man to provide annual scholarships to deserving students. The fund
will grant P120,000 each year for the first 5 years, P 30,000 per quarter for
the next 5 years and P10,000 each month
thereafter. The scholarship will start one year after the fund is established.
What is the amount of the donation if i = 12% compounded annually?
2.
How much yearly perpetuity can a man receive after 31 years if he starts
to save 90,000 today and increase it by 10,000 yearly for the next 10 years,
then increase it by 5% yearly for the next 10 years and maintained his annual
savings for the last 10 years if i = 12%
3.
A Php 50,000 bond with
rate of 8% annually pays dividend quarterly is redeemable at par at the end of 10
years. Determine the present worth if the bond pays 12% compounded annually?
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