Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be Php42036 each year for the first 5 years, Php52373 each year for year 6 through 10 and P62313 each year for year 11 through 15. If money is placed in account that will pay 12% interest compounded semi-annually, how large should the gift be?
Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be Php42036 each year for the first 5 years, Php52373 each year for year 6 through 10 and P62313 each year for year 11 through 15. If money is placed in account that will pay 12% interest compounded semi-annually, how large should the gift be?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve the following question with complete solution and include cash flow diagram: (DO NOT USE EXCEL) (Handwritten/Type only)
Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be Php42036 each year for the first 5 years, Php52373 each year for year 6 through 10 and P62313 each year for year 11 through 15. If money is placed in account that will pay 12% interest compounded semi-annually, how large should the gift be?
(Round off the interest rate to 5 significant places and final answer to 2 decimal)
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