Question
A marketing company established a program to replace the cars of its sales representatives at the end of every 7 years. The present price of
A marketing company established a program to replace the cars of its sales representatives at the end of every 7 years. The present price of the approved type of car is P532,854. Under this inflationary economy, the approximate average inflation for 4 years is 3.238% and for the following years is 5.118%.
21. What is the appropriate future cost of the car after 7 years?
22. If you have P520,000 invested in a bank offering 8.854% interest rate and plan to buy the car after 7 years, how much is your money worth after 7 years?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
