A woman is considering giving an endowment to a university in order to provide payments of Php 55100 , Php 87655, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever?
A woman is considering giving an endowment to a university in order to provide payments of Php 55100 , Php 87655, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A woman is considering giving an endowment to a university in order to provide payments of Php 55100 , Php 87655, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever?
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