A sum of P10,000 was invested now and left for 6 years, at which this time the principal iswithdrawn. The interest that has accrued is left for another 12 years. If the effectiveannual interest rate is 15.8%, what will be the withdrawal amount at the end of the 18thyear?

Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Answered: A sum of P10,000 was invested now and…

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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A sum of P10,000 was invested now and left for 6 years, at which this time the principal is withdrawn. The interest that has accrued is left for another 12 years. If the effective annual interest rate is 15.8%, what will be the withdrawal amount at the end of the 18th year?