Explainwhich is the better deal among the number of years and compounding period (the advantages and disadvantages of the compounding periods and years) Write a conclusion.
Explainwhich is the better deal among the number of years and compounding period (the advantages and disadvantages of the compounding periods and years) Write a conclusion.
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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Explainwhich is the better deal among the number of years and compounding period (the advantages and disadvantages of the compounding periods and years)
Write a conclusion.
Transcribed Image Text:Maturity Value: 3,500,000.00
Interest Rate: 2.75% or 0.0275
Frequency of Conversion: Annually
For 10 years annually:
For 25 years Annually:
Periodic Deposit =
Si
(1+i)" -1
si
(1+i)" -1
Periodic Deposit =
(Php 3,500,000)(2)
(1+ 2782 y0 -1
2.755
Periodic Deposit =
(Php 3,500.000)(2)
Periodic Deposit =
2765
25
(1+
Periodic Deposit = Php 308,839.02
Periodic Deposit = Php 99,189.91
Total Deposit: Php 3,088,390.2
Total Deposit: Php 2,479,747.75
For 15 years Annually:
For 30 years Annually:
Si
Si
Periodic Deposit =
Periodic Deposit =
(1+i)" -1
(1+i)" -1
(Php 3.500.000)(2
(1+ 2 ) 30 -1
.751
(Php 3.500,0o0) (
(1+ )a -1
Periodic Deposit =
Periodic Deposit =
2753
Periodie Deposit = Php 191,657.11
Periodic Deposit = Php 76,595.47
Total Deposit: Php 2.964.856,65
Total Deposit: Php 2,297,864.1
For 20 years Annually:
Periodic Deposit =
Si
(1+i)" -1
(Php 3.500.000)()
(1+ 27 ) 20-1
Periodic Deposit =
Periodic Deposit = Php 133,601.06
Total Deposit: Php 2.672,021.2
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