A Businessman wants to have P100,000 3 years from now. What amount should he invest now if it will earn interest of 8 % compounded semiannually for the first two years and 12% compounded quarterly during the next year.

A Businessman wants to have P100,000 3 years from now. What amount should he invest now if it will earn interest of 8 % compounded semiannually for the first two years and 12% compounded quarterly during the next year.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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A Businessman wants to have P100,000 3 years from now. What amount should he
invest now if it will earn interest of 8 % compounded semiannually for the first two
years and 12% compounded quarterly during the next year.

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