5. A man wishes his son to receive P200,000 ten years from now. What amount should he invest if it will earn interest of 10% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years? Ans, P68,758.67

5. A man wishes his son to receive P200,000 ten years from now. What amount should he invest if it will earn interest of 10% compounded annually during the first 5 years and 12% compounded quarterly during the next 5 years? Ans, P68,758.67

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter5: Deductions For And From Agi

Section: Chapter Questions

Problem 8MCQ

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Question

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Solve questions no.5 and 6, and show a clear and readable solution.

Note: The answer is given on the bottom side of each number, just show the solution on how to get it. Also, please write the given and the required.

Thanks!!!

5. A man wishes his son to receive P200,000 ten years from now.
What amount should he invest if it will earn interest of 10%
compounded annually during the first 5 years and 12% compounded
quarterly during the next 5 years?
Ans. P68,758.67
6. By the conditions of a will, the sum of P25,000 is left to a girl
to be held in trust by her guardian until it amounts to P45,000. When
will the girl receive the money if the fund is invested at 8%
compounded quarterly?
Ans. 7.42 years

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