Architect Santos is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires, so that, beginning one year after his retirement, he will receive annual payments of P600,000 for the next 10 years. Determine the value of A which he should deposit semi-annually if the interest rate 8% compounded semi-annually. Use equation of value with focal point at Year 15. Show Cash Flow Diagram.
Architect Santos is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires, so that, beginning one year after his retirement, he will receive annual payments of P600,000 for the next 10 years. Determine the value of A which he should deposit semi-annually if the interest rate 8% compounded semi-annually. Use equation of value with focal point at Year 15. Show Cash Flow Diagram.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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Architect Santos is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6 months until he retires, so that, beginning one year after his retirement, he will receive annual payments of P600,000 for the next 10 years. Determine the value of A which he should deposit semi-annually if the interest rate 8% compounded semi-annually. Use equation of value with focal point at Year 15. Show Cash Flow Diagram.
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