Ronald makes year-end deposit of P15000, the first year increasing the year's deposits by 10% until the end of the 10th year. Ellen makes equal start-of-year deposits of P14000 each year for 10 years. If interest on both funds is 8% compounded annually, how much is difference of savings at the end of ten years?
Ronald makes year-end deposit of P15000, the first year increasing the year's deposits by 10% until the end of the 10th year. Ellen makes equal start-of-year deposits of P14000 each year for 10 years. If interest on both funds is 8% compounded annually, how much is difference of savings at the end of ten years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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![Economics
Ronald makes year-end deposit of P15000, the first year increasing
the year's deposits by 10% until the end of the 10th
makes equal start-of-year deposits of P14000 each year for 10 years.
If interest on both funds is 8% compounded annually, how much is
difference of savings at the end of ten years?
year.
Ellen](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb55f6632-39fa-46f2-9acb-d916068af281%2F6a5b6bf4-4084-4557-8967-86eb7dd329d8%2F2u5781y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economics
Ronald makes year-end deposit of P15000, the first year increasing
the year's deposits by 10% until the end of the 10th
makes equal start-of-year deposits of P14000 each year for 10 years.
If interest on both funds is 8% compounded annually, how much is
difference of savings at the end of ten years?
year.
Ellen
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