A man deposits Php 6,000 in a strange bank that promises 1.5% simple growth interest for 'w' years. After that, 2% interest will begin for 'x' years, which is to be compounded semiannually. If the man wishes the future amount to be up by 147% its principal amount. How many years should the money sit in this strange bank given that the time of "x" is twice as much as "w"? Draw a cashflow diagram based on either the borrower's perspective or the lender's perspective.

A man deposits Php 6,000 in a strange bank that promises 1.5% simple growth interest for 'w' years. After that, 2% interest will begin for 'x' years, which is to be compounded semiannually. If the man wishes the future amount to be up by 147% its principal amount. How many years should the money sit in this strange bank given that the time of "x" is twice as much as "w"? Draw a cashflow diagram based on either the borrower's perspective or the lender's perspective.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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