A. Ken deposits P100,000 today and another P 200,000 in five years into a fund that pays simple discount at 5% p.a. Ian makes the same deposits into another fund that credits interest at 10% effective per year, but at time n and 2n, respectively. At the end of 10 years, the accumulated value of Ken's deposits is exactly the same as the accumulated value of Ian's deposits. Calculate n.
A. Ken deposits P100,000 today and another P 200,000 in five years into a fund that pays simple discount at 5% p.a. Ian makes the same deposits into another fund that credits interest at 10% effective per year, but at time n and 2n, respectively. At the end of 10 years, the accumulated value of Ken's deposits is exactly the same as the accumulated value of Ian's deposits. Calculate n.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 15E
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