Which of the accounts will require the least deposit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please use the formula given ty !
Transcribed Image Text:4) Three years from now, Mr. Dela Cruz wants to start a business. In order to do that, he estimated that he needs initial capital of
Php100,000. He can deposit an amount today in one of the following accounts:
Account #1: offers 1.5% annual compound interest rate
Account #2; offers a 1.4% annual interest rate compounded quarterly
Account #3: offers a 1.1% annual interest rate compounded monthly
Hint: Use the formula P=4 for annually
(1+r)
A for quarterly and monthly where m stands for the number of months
(1+r)
Which of the accounts will require the least deposit?
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