Determine the present amount and the accumulated amount of an annuity consisting of 6 payments of P120,000 each, the payments are made at the beginning of each year. Money is worth 15% compounded annually? Show complete manual computation with cash flow diagram.

Determine the present amount and the accumulated amount of an annuity consisting of 6 payments of P120,000 each, the payments are made at the beginning of each year. Money is worth 15% compounded annually? Show complete manual computation with cash flow diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Determine the present amount and the accumulated
amount of an annuity consisting of 6 payments of
P120,000 each, the payments are made at the
beginning of each year. Money is worth 15%
compounded annually?
Show complete manual computation with cash
flow diagram.

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