Mr. Alhambra has instructed his bank to establish a trust fund that will provide P10,000 per year for the first five years then P8000 per year for the next 10 years and then will provide P7,000 per year thereafter to help pay for the upkeep on a memorial garden. The first of these payments would begin on Jan1, 2009, He also wishes to provide P100,000 every 8 years for replacement to start Jan 1, 2015. Suppose it is now Jan 1, 2004, how much should be in the trust fund today if interest rate is 5% compounded annually? 7.

Mr. Alhambra has instructed his bank to establish a trust fund that will provide P10,000 per year for the first five years then P8000 per year for the next 10 years and then will provide P7,000 per year thereafter to help pay for the upkeep on a memorial garden. The first of these payments would begin on Jan1, 2009, He also wishes to provide P100,000 every 8 years for replacement to start Jan 1, 2015. Suppose it is now Jan 1, 2004, how much should be in the trust fund today if interest rate is 5% compounded annually? 7.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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