Joey has 750,000 in bank account as of December 31,2018. If he deposited P40,000 in the account at the end of each next 3 years and the account earns 8% per annum,the amount he will have in the account by the end of 2021 will be closest to JOEY has P750,000 in bank accountas of Dec. 31, 2018. If he depositedP40,000 in the account at the end ofeach next 3 years and the accountearns 8% per annum, the amount hewill have in the account by the end of2021 will be closest toO P920,000P960,000O P1,070,000O P1,120,000

Interest is the amount paid to the bank against loan taken. It is determined by multiplying the…

Joey has 750,000 in bank account as of December 31,2018. If he deposited P40,000 in the account at the end of each next 3 years and the account earns 8% per annum,the amount he will have in the account by the end of 2021 will be closest to

Joey has 750,000 in bank account as of December 31,2018. If he deposited P40,000 in the account at the end of each next 3 years and the account earns 8% per annum,the amount he will have in the account by the end of 2021 will be closest to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

JOEY has P750,000 in bank account
as of Dec. 31, 2018. If he deposited
P40,000 in the account at the end of
each next 3 years and the account
earns 8% per annum, the amount he
will have in the account by the end of
2021 will be closest to
O P920,000
P960,000
O P1,070,000
O P1,120,000

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