A young man has decided to go into business at age 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 C. P d. P = P505,675.23 P503,675.23 %3D P503, 765.23 %3D %3D

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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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
b. P
С. Р.
d. P1
P505,765.23
P503,675.23
P503, 765.23
= P505, 675.23
%3D
%3D
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 b. P С. Р. d. P1 P505,765.23 P503,675.23 P503, 765.23 = P505, 675.23 %3D %3D
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