The president of a growing firm wishes to give each of 13 employees a holiday bonus. How much is needed to invest monthly for a year at 4% nominal interest rate, compounded monthly, so that each employee will receive P1,000 bonus and if payments are done every beginning of the month?

The president of a growing firm wishes to give each of 13 employees a holiday bonus. How much is needed to invest monthly for a year at 4% nominal interest rate, compounded monthly, so that each employee will receive P1,000 bonus and if payments are done every beginning of the month?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Topic: Annuities Due Formulas: Future value- F=C [(1+i)^n -1/i] (1+i) Present value- P=C [1-(1+i)^-n/i] (1+i) P.S - Use manual solving thank you!!

The president of a growing firm wishes to give each of 13 employees a holiday
bonus. How much is needed to invest monthly for a year at 4% nominal interest
rate, compounded monthly, so that each employee will receive P1,000 bonus and
if payments are done every beginning of the month?

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Topic: Annuities Due Formulas: Future value- F=C [(1+i)^n -1/i] (1+i) Present value- P=C [1-(1+i)^-n/i] (1+i) P.S please use manual solving thanks!
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