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
Related questions
Question
Theory of in
Transcribed Image Text:Consider the following accumulated
amounts.
1. A deposit of P100,000 at an annual
simple interest rate of 5% accumulates
to A at the end of 5 years.
2. A deposit of P100,000 at an annual
simple interest rate of 6% accumulates
to B at the end of 4 years.
3. A deposit of P100,000 at an annual
simple discount rate of 3%
accumulates to C at the end of 8 years.
4. A deposit of P90,000 at an annual
simple discount rate of 5%
accumulates to D at the end of 5 years.
5. A deposit of P90,000 at an annual
simple discount rate of 4%
accumulates to E at the end of 6 years.
Which deposit accumulates to the
biggest amount: A, B, C, D or E?
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