A wealthy man desires to award annual scholarships to deserving ECE students for 5 years. The scholarship will start one year after their scholarship fund is established. The fund will award P120,000 for the first year; P150,000 each year for the next two years and P180,000 each year for the remaining years. If the fund earns 15% compounded semiannually, what is the amount needed now to sustain the said scholarship?
A wealthy man desires to award annual scholarships to deserving ECE students for 5 years. The scholarship will start one year after their scholarship fund is established. The fund will award P120,000 for the first year; P150,000 each year for the next two years and P180,000 each year for the remaining years. If the fund earns 15% compounded semiannually, what is the amount needed now to sustain the said scholarship?
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 wealthy man desires to award annual scholarships to deserving ECE students for 5 years. The scholarship will start one year after their scholarship fund is established. The fund will award P120,000 for the first year; P150,000 each year for the next two years and P180,000 each year for the remaining years. If the fund earns 15% compounded semiannually, what is the amount needed now to sustain the said scholarship?
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