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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Question
The will of a wealthy philanthropist left ₱5,000,000 to establish a perpetual charitable foundation. The foundation trustees decided to spend ₱1,200,000 to provide facilities immediately and to provide ₱100,000 of capital replacement at the end of each 5-year period. If the invested funds earned 12% per annum, what would be the year-end amount available in perpetuity from the endowment for charitable purpose? Use 5 as focal point. Ans. ₱79,245
Transcribed Image Text:repairs.
4. An asphalt road requires no upkeep
until the end of 2 years when sixty
thousand pesos, will be needed for
After this, ninety thousand pesos will be
needed for repairs at the end of each
years for the next 5 years, then one hun
ared twenty thousand pesos at the end
of each year for the next
ney is worth 14% compounded anni
hally
what was the equivalent uniform annual
cost for the 12-year period?
equivar pound years. If m
5
0 1 2 3 4 5 6
GOK
678
90k
q
10
120k
11 12
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