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A young man has decided to go into business at age 40. He wishes to accumulate P2, 000, 000 at that age. On his 25th birthday he deposits a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be? a. P = P505,765.23 b. P P503,675.23 C. P d. P = %3D P503, 765.23 P505, 675.23

A young man has decided to go into business at age 40. He wishes to accumulate P2, 000, 000 at that age. On his 25th birthday he deposits a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be? a. P = P505,765.23 b. P P503,675.23 C. P d. P = %3D P503, 765.23 P505, 675.23

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Engineering Economics
A young man has decided to go into business at age 40. He wishes to accumulate P2, 000, 000 at that age. On his 25th birthday he deposits a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be? a. P = P505,765.23 b. P, = P503,675.23 С. Р. d. P = P505, 675.23 %3D P503,765.23
Transcribed Image Text:A young man has decided to go into business at age 40. He wishes to accumulate P2, 000, 000 at that age. On his 25th birthday he deposits a certain amount and will increase the deposit by 10% each year until the fortieth year. If the funds can be invested at 9.6% compounded annually, how much should his initial investment be? a. P = P505,765.23 b. P, = P503,675.23 С. Р. d. P = P505, 675.23 %3D P503,765.23
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