In five years, P 20,000 will be bedded to pay for a building renovation. In order to generate this sum, an annuity consisting of three annual payments is established now. What payment is necessary if money is worth 15% annually?

In five years, P 20,000 will be bedded to pay for a building renovation. In order to generate this sum, an annuity consisting of three annual payments is established now. What payment is necessary if money is worth 15% annually?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Question

In five years, P 20,000 will be bedded to pay for a building renovation. In order to
generate this sum, an annuity consisting of three annual payments is established
now. What payment is necessary if money is worth 15% annually?
P 4355
P 5355
P 2920
P 3920

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