Question
You have just recently become a parent and you wish to determine what lump sum would have to be paid into an amount bearing interest
You have just recently become a parent and you wish to determine what lump sum would have to be paid into an amount bearing interest at 8% compounded annually, in order to withdraw P 15,000.00 each on 18th, 19th, 20th, 21st birthday of your child. How much is the lump sum amount? (Show complete solution and Cash Flow Diagram).
- P 12,432.8479
- P 13,324.9748
- P 13,327.8749
- P 12,243.4879
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
