mployee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee’s monthly salary is ₱70,000 and decided to invest 10% of her salary per month in the fund for 4 years. On the 5th year, the employee got promoted and her salary was increased to ₱100,000. She continued to invest the same percentage of her salary to the fund for 7 more years until she retires. QUESTION: What is the present worth of the entire fund? Choices ₱1,106,007.35 ₱1,045,926.03 ₱1,003,908.99
mployee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee’s monthly salary is ₱70,000 and decided to invest 10% of her salary per month in the fund for 4 years. On the 5th year, the employee got promoted and her salary was increased to ₱100,000. She continued to invest the same percentage of her salary to the fund for 7 more years until she retires. QUESTION: What is the present worth of the entire fund? Choices ₱1,106,007.35 ₱1,045,926.03 ₱1,003,908.99
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An employee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee’s monthly salary is ₱70,000 and decided to invest 10% of her salary per month in the fund for 4 years. On the 5th year, the employee got promoted and her salary was increased to ₱100,000. She continued to invest the same percentage of her salary to the fund for 7 more years until she retires. QUESTION: What is the present worth of the entire fund?
Choices
₱1,106,007.35
₱1,045,926.03
₱1,003,908.99
₱951,658.58
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