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For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the next 5 years. For the first year, the maintenance will be covered by the dealer. For the second year the maintenance will cost me P10,000. For the remaining years, the maintenance will increase by P10,000 each year. How much should I set aside in a bank to meet the installments and maintenance expenses for the next 5 years if the interest rate is 8%? O P1,176,056 O P1,472,995 O P1,071,902 O P1,090,450

For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the next 5 years. For the first year, the maintenance will be covered by the dealer. For the second year the maintenance will cost me P10,000. For the remaining years, the maintenance will increase by P10,000 each year. How much should I set aside in a bank to meet the installments and maintenance expenses for the next 5 years if the interest rate is 8%? O P1,176,056 O P1,472,995 O P1,071,902 O P1,090,450

Essentials Of Investments
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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For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the next 5 years. For the first year, the maintenance will be covered by the dealer. For the second year the maintenance will cost me P10,000. For the remaining years, the maintenance will increase by P10,000 each year. How much should I set aside in a bank to meet the installments and maintenance expenses for the next 5 years if the interest rate is 8%? P 1,176,056 P 1,472,995 P1,071,902 P 1,090,450
Transcribed Image Text:For my newly purchased car, I have to pay five year-end installments of P250,000 each year for the next 5 years. For the first year, the maintenance will be covered by the dealer. For the second year the maintenance will cost me P10,000. For the remaining years, the maintenance will increase by P10,000 each year. How much should I set aside in a bank to meet the installments and maintenance expenses for the next 5 years if the interest rate is 8%? P 1,176,056 P 1,472,995 P1,071,902 P 1,090,450
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