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Hi guys need help for the subject Theory of Interest. Please give proper steps and coherent solutions. I will put up vote for your help.
Hi guys need help for the subject Theory of Interest. Please give proper steps and coherent solutions.
I will put up vote for your help.
A grandmother has a granddaughter entering university next year. Her granddaughter expects to remain in school for five years and receive a PhD. This grandmother wishes to provide P50,000 semiannually to her granddaughter to help her with the expenses. (a) Assuming a 4.5% interest rate convertible semiannually, how much does the grandmother have to deposit today to provide ten annual payments starting six months from now and continuing for ten years? (b) How would this compare (use order relation symbols e.g. (a)>(b)). if the granddaughter receives half of the amount every quarter at 4.5% interest convertible quarterly; (c) Do (a) if each of the payments was to be given before each semester start insteadStep by Step Solution
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