Problem Statement: ME Board April 1998An instructor plans to retire in exactly one year and want an account that will pay him P25,000 a year for the next 15 years. Assuming a 6% annual effective interest rate, what is the amount he would need to deposit now? (The fund will be depleted after 15 years).
- A. P242,860.22
- B. P242,680.22
- C. P242,608.22
- D. P242,806.22
Problem Answer:The amount he would need to deposit now is P242,806.22.
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