Lovely is now 19 years old asnd would want P2.5 million on her 45th She intends to make 11 annual deposits to earn 9 percent per annum and subsequently rollover the amount she would have in her 30th birthday until her 45th year. How much should be her annual deposit for the next 11 years?

Lovely is now 19 years old asnd would want P2.5 million on her 45th She intends to make 11 annual deposits to earn 9 percent per annum and subsequently rollover the amount she would have in her 30th birthday until her 45th year. How much should be her annual deposit for the next 11 years?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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Lovely is now 19 years old asnd would want P2.5 million on her 45^th She intends to make 11 annual deposits to earn 9 percent per annum and subsequently rollover the amount she would have in her 30^th birthday until her 45^th year. How much should be her annual deposit for the next 11 years?

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