A parent on the day the child is born wishes to determine what lump sum would have to be paid into an account bearing interest at 5% compounded annually in order to withdraw 20,000 pesos each on the child's 18th, 19th, 20th, and 21st birthdays. How much is the lump sum amount?

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Present value of an amount amount 1 1rn here r 5 n number of years year c... View the full answer