As a university scholar, you are entitled to a free one-way ticket from the university back to your hometown every year. Airplane tickets increase approximately Php 400.00 every year. Currently, the cost of a plane ticket from Manila to you city is Php 3500.00. How much should you request from the university to deposit in a saving account to fund your tickets for 5 years?
As a university scholar, you are entitled to a free one-way ticket from the university back to your hometown every year. Airplane tickets increase approximately Php 400.00 every year. Currently, the cost of a plane ticket from Manila to you city is Php 3500.00. How much should you request from the university to deposit in a saving account to fund your tickets for 5 years?
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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1. As a university scholar, you are entitled to a free one-way ticket from the university back to your hometown every year. Airplane tickets increase approximately Php 400.00 every year. Currently, the cost of a plane ticket from Manila to you city is Php 3500.00. How much should you request from the university to deposit in a saving account to fund your tickets for 5 years? Assume that the interest rate is fixed at 4%.
2.A business tycoon is planning to provide a scholarship to one deserving student that will provide a monthly allowance of P3,000.00 indefinitely, beginning one month from now. How much should be invested today to cover the scholarship if:
a.) the interest rate is 12%
b.) the interest rate is 12% and the first monthly allowance is given 1 year from now.
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