Mr. James Lubay working in the United States planned of returning to the Philippines at the end of 2001. He established a fund starting at 1995 with the following recorded deposits and withdrawals: January 1, 1995 – deposit of P40,000 January 1, 1997 – deposit of P80,000 July 1, 1997 – withdrawal of P12,000 July 1, 1998 – deposit of P64,000 January 1, 1999 - withdrawal of P48,000 His fund earned an interest at the rate of 3.5% compounded semi-annually until the end of 1997. At that date, the interest was augmented to 4% compounded semi-annually. What will be the principal in the fund at the end of 2001?
Mr. James Lubay working in the United States planned of returning to the Philippines at the end of 2001. He established a fund starting at 1995 with the following recorded deposits and withdrawals: January 1, 1995 – deposit of P40,000 January 1, 1997 – deposit of P80,000 July 1, 1997 – withdrawal of P12,000 July 1, 1998 – deposit of P64,000 January 1, 1999 - withdrawal of P48,000 His fund earned an interest at the rate of 3.5% compounded semi-annually until the end of 1997. At that date, the interest was augmented to 4% compounded semi-annually. What will be the principal in the fund at the end of 2001?
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
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Transcribed Image Text:4. Mr. James Lubay working in the United States planned of returning to the Philippines at
the end of 2001. He established a fund starting at 1995 with the following recorded
deposits and withdrawals:
January 1, 1995 – deposit of P40,000
January 1, 1997 – deposit of P80,000
July 1, 1997 – withdrawal of P12,000
July 1, 1998 – deposit of P64,000
January 1, 1999 – withdrawal of P48,000
His fund earned an interest at the rate of 3.5% compounded
semi-annually until the end of 1997. At that date, the interest was augmented to 4%
compounded semi-annually. What will be the principal in the fund at the end of 2001?
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