John borrowed P4500 cash from his friend. His friend's condition is that he must pay his debt in 2 years with an interest of 3% one time payment only. However, john plans to set aside an amount of money in his piggy bank every 3months with an interest of 4% compounded quarterly until he can accumulate the total debt and pay it one time to his friend. How much money must John set aside every 3months?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...
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John borrowed P4500 cash from his friend. His friend's condition is that he
must pay his debt in 2 years with an interest of 3% one time payment only.
However, john plans to set aside an amount of money in his piggy bank every
3months with an interest of 4% compounded quarterly until he can
accumulate the total debt and pay it one time to his friend. How much money
must John set aside every 3months?
Transcribed Image Text:John borrowed P4500 cash from his friend. His friend's condition is that he must pay his debt in 2 years with an interest of 3% one time payment only. However, john plans to set aside an amount of money in his piggy bank every 3months with an interest of 4% compounded quarterly until he can accumulate the total debt and pay it one time to his friend. How much money must John set aside every 3months?
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