Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9. Please put full solution and USE 2 decimal places for all SOLUTIONS/COMPUTATIONS and ANSWERS. Thank you! [BONUS] Mr. Lee deposited a large amount of
9. Please put full solution and USE 2 decimal places for all SOLUTIONS/COMPUTATIONS and ANSWERS. Thank you!
[BONUS] Mr. Lee deposited a large amount of money in his first bank account. Annual withdrawals of 30,000 pesos starting EOY 1 were made for 7 years to pay for personal expenses. He stopped withdrawing after the 7th year when he was assigned to work abroad. After 3 years of working abroad without withdrawing or depositing from his bank account, he went back to the Philippines. He started withdrawing money again on the end of the 10th year with an amount of 5,000 pesos, 7,000 pesos on the 11th year, 9,000 pesos on the 12th year, and the same trend goes up to the 15th year. After which, the following withdrawals were made at the end of each year: 16th year 2,500 pesos 17th year 3,000 pesos 18th year 3,500 pesos 19th year 4,000 pesos 20th year 4,500 pesos The bank uses a nominal interest rate of 5% compounded annually. How much should the initial investment be (in PHP) if Mr. Lee wants to have an exact amount of 300,000 pesos left after 20 yearsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started