Pls. show the complete solution with cash flow diagrams A wealthy business Mr. Banaman wants to start a permanent fund for supporting research directed toward sustainability. The donor Mr. Madchawing plans to give equal amounts of money for each of the next 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning in year 6. If the fund earns interest at a rate of 8% per year. How much money must be donated each time?
Pls. show the complete solution with cash flow diagrams A wealthy business Mr. Banaman wants to start a permanent fund for supporting research directed toward sustainability. The donor Mr. Madchawing plans to give equal amounts of money for each of the next 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning in year 6. If the fund earns interest at a rate of 8% per year. How much money must be donated each time?
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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Please use different formula not the excel format so I can take note of it. Thanks
Transcribed Image Text:Pls. show the complete solution with cash flow diagrams
A wealthy business Mr. Banaman wants to start a permanent fund for supporting research directed
toward sustainability. The donor Mr. Madchawing plans to give equal amounts of money for each of the
next 5 years plus one now, so that P100,000 per year can be withdrawn each year forever. Beginning in
year 6. If the fund earns interest at a rate of 8% per year. How much money must be donated each
time?
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