Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and other things worth P2M. What should be his deposits in the last 3 years? Answer: A = P822,214.23
Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and other things worth P2M. What should be his deposits in the last 3 years? Answer: A = P822,214.23
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 8PROB
Related questions
Question
![Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this
amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at
the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and
other things worth P2M. What should be his deposits in the last 3 years?
Answer: A =
P822,214.23](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cef2e30-39e7-4ca4-a264-c006952c585b%2F6058ec9d-36a2-465d-a342-38cdb179317a%2Fhjr9n_processed.png&w=3840&q=75)
Transcribed Image Text:Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this
amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at
the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and
other things worth P2M. What should be his deposits in the last 3 years?
Answer: A =
P822,214.23
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CFIN](https://www.bartleby.com/isbn_cover_images/9781337671743/9781337671743_smallCoverImage.jpg)
![EBK CFIN](https://www.bartleby.com/isbn_cover_images/9781337671743/9781337671743_smallCoverImage.jpg)