Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be Php42641 each year for the first 5 years, Php53449 each year for year 6 through 10 and P62395 each year for year 11 through 15. If money is placed in account that will pay 12% interest compounded semi-annually, how large should the gift be? Round your answer to 2 decimal places.
Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be Php42641 each year for the first 5 years, Php53449 each year for year 6 through 10 and P62395 each year for year 11 through 15. If money is placed in account that will pay 12% interest compounded semi-annually, how large should the gift be? Round your answer to 2 decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 5
Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to cover all future expected
maintenance costs for the building. These maintenance costs are expected to be Php42641 each year for the first 5 years,
Php53449 each year for year 6 through 10 and P62395 each year for year 11 through 15. If money is placed in account that will
pay 12% interest compounded semi-annually, how large should the gift be?
Round your answer to 2 decimal places.
Add your answer
FROM QUESTION 5: INCLUDE THE CASH FLOW DIAGRAM OF THIS PROBLEM AND ROUND OFF INTEREST RATE
TO 5 SIGNIFICANT PLACES AND YOUR FINAL ANSWER TO 2 DECIMAL PLACES.)
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