raw the cash-flow diagram if neccesary 4) A P3 million donation was given by a rich man to a foundation that cares for elderly people without shelters. This donation was then invested to a fund that earns an interest rate of 12% effective. The amount in the fund will provides an equal-beginning of a monthly medical expenses of P 37, 500 at the start of investment for the elderly as long as the amount is available. a) How long will it lasts? b) What available amount would be in the fund after the last monthly expense? Is show the solution. Thanks
raw the cash-flow diagram if neccesary 4) A P3 million donation was given by a rich man to a foundation that cares for elderly people without shelters. This donation was then invested to a fund that earns an interest rate of 12% effective. The amount in the fund will provides an equal-beginning of a monthly medical expenses of P 37, 500 at the start of investment for the elderly as long as the amount is available. a) How long will it lasts? b) What available amount would be in the fund after the last monthly expense? Is show the solution. Thanks
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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Transcribed Image Text:Draw the cash-flow diagram if neccesary
4) A P3 million donation was given by a rich man to a foundation that cares for elderly
people without shelters. This donation was then invested to a fund that earns an
interest rate of 12% effective. The amount in the fund will provides an equal-beginning
of a monthly medical expenses of P 37, 500 at the start of investment for the elderly as
long as the amount is available.
a) How long will it lasts?
b) What available amount would be in the fund after the last monthly expense?
Pls show the solution. Thanks
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