Based on the picture find the following: a.) What will be the worth of the deposits at year 40? b.) What will be the present worth of the withdrawals? c.) What will be the present worth of both the deposits and withdrawals?
Based on the picture find the following: a.) What will be the worth of the deposits at year 40? b.) What will be the present worth of the withdrawals? c.) What will be the present worth of both the deposits and withdrawals?
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.) Based on the picture find the following:
a.) What will be the worth of the deposits at year 40?
b.) What will be the present worth of the withdrawals?
c.) What will be the present worth of both the deposits and withdrawals?
Transcribed Image Text:Deposits of Php. 10,000, Php. 23667, and Php. 50,000
were made at the end of the years 4, 7, and 10,
respectively, with 8.33% compounded 4 times a year.
Withdrawals of 16669, Php 20,000, Php. 14294, and Php
1,000 were made at the end of years 20, 27, 30, and 32.
However, the interest rate per period changed at the
end of year 10 from 8.33% to 11.01% compounded 4
times a year.
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