A man decides to deposit a certain amount of money on his son's 10th birthday, which will be equivalent to P280,000.00 with today's purchasibg power of the peso on his son's 25th birthday when he will start his marriage life. If the bank pays 5.5% compounded annually and the rate of inflation is 8.7% compounded annually, how much should be deposited by the man? Using this formula F=P(1+f)^n.

A man decides to deposit a certain amount of money on his son's 10th birthday, which will be equivalent to P280,000.00 with today's purchasibg power of the peso on his son's 25th birthday when he will start his marriage life. If the bank pays 5.5% compounded annually and the rate of inflation is 8.7% compounded annually, how much should be deposited by the man? Using this formula F=P(1+f)^n.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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