ng from 1st October 2022. You estimate that you have to spend £1,200 each month to cover your living expenses over the entire learning period (12 months, assuming you have to pay the living expense at the end of each month starting from October 2022). In addition, you are expected to pay your tuition fee in three installments at the end of September 2022, January 2023, and May 2023, with each installment being £8,000. If the annual interest rate is 4.8

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume now you are at the end of January 2022, and you are planning how to cover the
expenses for your postgraduate study starting from 1st October 2022. You estimate that you
have to spend £1,200 each month to cover your living expenses over the entire learning
period (12 months, assuming you have to pay the living expense at the end of each month
starting from October 2022). In addition, you are expected to pay your tuition fee in three
installments at the end of September 2022, January 2023, and May 2023, with each
installment being £8,000. If the annual interest rate is 4.8%, how much do you need to have
in your bank account today to meet your expense needs for your postgraduate study?

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