You are planning to save enough money to buy a brand-new car five years from now....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are planning to save enough money to buy a brand-new car five years from now. You are setting a budget of Php 1,000,000 for this purchase. Your plan is to accumulate the amount by making three savings deposits at an interest rate of 10%. Deposit 1: Deposit Php 100,000 today, Deposit 2: Deposit Php 150,000 two years from now, Deposit 3: Deposit an amount of Php X three years from now. How much do you need to invest in year three to ensure that you have the necessary fund to buy the new car at the end of year five? You are planning to save enough money to buy a brand-new car five years from now. You are setting a budget of Php 1,000,000 for this purchase. Your plan is to accumulate the amount by making three savings deposits at an interest rate of 10%. Deposit 1: Deposit Php 100,000 today, Deposit 2: Deposit Php 150,000 two years from now, Deposit 3: Deposit an amount of Php X three years from now. How much do you need to invest in year three to ensure that you have the necessary fund to buy the new car at the end of year five?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these general management questions
-
You are considering investing $3,000 at an interest rate of 8% compounded annually for five years or investing the $3,000 at 9% per year simple interest for five years. Which option is better?
-
You are offered $900 five years from now or $150 at the end of each year for the next five years. If you can earn 6 percent on your funds, which offer will you accept? If you can earn 14 percent on...
-
A bank offers a $25,000 loan at an interest rate of 7.7% that can be paid back over 2 to 10 years. a. Write the monthly payment formula for this loan situation. Let t represent the number of years...
-
Find steady state current i of a RL circuit with L=2 H and R=892 which can be modeled by the following differential equation: 2di/dt+8i=v(t) where v(t) = 16 cos(10t -45) with phasor technique. Also...
-
Employees have a right to privacy, but employers also have a right to create and maintain an efficient and safe workplace. Do you think that existing laws strike an appropriate balance between...
-
The price of Chive Corp. stock will be either $57 or $84 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 4 percent. a. Suppose the current...
-
What conditions for the binomial distribution, if any, fail to hold in the following situations? (a) For each of a company's eight production facilities, record whether or not there was an accident...
-
Gothic Architecture is a new chain of clothing stores specializing in the color black. Gothic issues 1,000 shares of its $1 par value common stock at $30 per share. Record the issuance of the stock....
-
[1] In Calculus, it can be proven that Write a MATLAB script that approximates this infinite series by a finite such that the absolute error falls below a certain tolerance entered by the user. For...
-
Pelts Company holds a total of 70 percent of Bugle Corporation and 80 percent of Cook Products Corporation stock. Bugle purchased a warehouse with an expected life of 20 years on January 1, 20X1, for...
-
You are a pilot. You have a stuffy nose and are taking a commercial, over-the-counter cold remedy. How can you tell if it is legal for you to fly while you are taking that medication? Even if it...
-
Refer to the revenue arrangement in P18-1. Instructions Consider the following information and respond to the requirements indicated. (a) In response to competitive pressures for the Internet access...
-
Henrik Mining Company purchased land on February 1, 2015, at a cost of 1,250,000. It estimated that a total of 60,000 tons of mineral was available for mining. After it has removed all the mineral...
-
The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan is linked to growth in earnings per share. When annual EPS growth is 12%,...
-
Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical technology products company. Wichita is in dire need of additional capital to keep...
-
Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service for the windows. The installation process does not involve changes in...
-
Macy's Inc. is a leading multinational fragrance, skincare, and cosmetics brands company. It is a legitimate perfumery business that upholds a high aesthetic value, coaxes excellence, and exudes...
-
You are the newly appointed tax practitioner to complete Emilys tax return and have downloaded the prefill report for Emilys tax return (hint, you can read what a prefill report is here (Links to an...
-
What is a stop payment? How do you create a stop payment?
-
Define and describe a Canada Savings Bond (CSB). What is the difference between a CSB and a Canada Premium Bond?
-
Define and describe a debit card.
-
There are 24,627 species of fish on Earth. Decide whether the statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain clearly.
-
For a flight on a small plane, the pilot asks passengers what they weigh. Identify at least one likely source of random errors and also identify at least one likely source of systematic errors.
-
An American Airlines agent tells you that you must pay a surcharge because your checked bag weighs 23.018 kg, which exceeds the limit of 23 kg, and that theres no doubt that the scale is correct...
Study smarter with the SolutionInn App