A young student wishes to go on a trip around Asia ten years from now. To prepare for such travel, he deposited now an amount of P 1,000 on an account on a bank that pays 8% compounded monthly. Then, he wishes to continue his deposits every end-of a month for ten years with increasing amounts. If his monthly deposits increases by 10% starting from the first to the last deposit, a) what amount would this student expects be on his account before the said travel, assuming no withdrawals take place? b) if after seven years of monthly deposits, the student wishes to withdrew all of his money on his account, how much would it be?
A young student wishes to go on a trip around Asia ten years from now. To prepare for such travel, he deposited now an amount of P 1,000 on an account on a bank that pays 8% compounded monthly. Then, he wishes to continue his deposits every end-of a month for ten years with increasing amounts. If his monthly deposits increases by 10% starting from the first to the last deposit, a) what amount would this student expects be on his account before the said travel, assuming no withdrawals take place? b) if after seven years of monthly deposits, the student wishes to withdrew all of his money on his account, how much would it be?
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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please help me and show casflow diagram if needed. and also please,show complete solution please
Transcribed Image Text:5) A young student wishes to go on a trip around Asia ten years from now. To
prepare for such travel, he deposited now an amount of P 1,000 on an
account on a bank that pays 8% compounded monthly. Then, he wishes to
continue his deposits every end-of a month for ten years with increasing
amounts. If his monthly deposits increases by 10% starting from the first to
the last deposit,
a) what amount would this student expects be on his account before the said
travel, assuming no withdrawals take place?
b) if after seven years of monthly deposits, the student wishes to withdrew
all of his money on his account, how much would it be?
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