Cesar Moreno is considering entering into an agreement with BDO bank to deposit P1,000 into a special account at the end of the first year. P1,100 at the end of the second year, etc. increasing by P100 each year. At the end of 15 years, he would be able to withdraw a lump sum of P36,000 at what rate would he earn interest, if the interest was compouded anually?

Cesar Moreno is considering entering into an agreement with BDO bank to deposit P1,000 into a special account at the end of the first year. P1,100 at the end of the second year, etc. increasing by P100 each year. At the end of 15 years, he would be able to withdraw a lump sum of P36,000 at what rate would he earn interest, if the interest was compouded anually?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

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