The owner of a company plans to expand his firm 6 years from now so he plans to make quarterly deposits of P100,000 in a bank account for 5 years. If the deposits will be made at the start of the periods, how much money can he withdraw to start the expansion by the end of the 6th year if the money earns an interest of 15% compounded semi-annually? Show complete solution with cash flow diagram

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
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The owner of a company plans to expand his firm 6 years from now so he plans to make

quarterly deposits of P100,000 in a bank account for 5 years. If the deposits will be

made at the start of the periods, how much money can he withdraw to start the

expansion by the end of the 6th year if the money earns an interest of 15% compounded

semi-annually?

Show complete solution with cash flow diagram

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