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25 May, 10:40

How much money should a student place in a time deposit in a bank that pays 1.1% compounded annually so that he will have Php 200,000.00 after 6 yrs?

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  1. 25 May, 11:07
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    Let us say that:

    P = present value

    F = future value

    i = interest rate

    n = period

    P = F / [ (1 + i) ^n ]

    P = 200000 / [ (1 + 0.011) ^6 ]

    P = 187293.65

    Therefore the student must put up Php 187,293.65
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