Engineering Board Exam Reviewer · Ordinary Annuity · medium
How many years are needed to accumulate P1,000,000 by depositing P50,000 at the end of each year at 8% interest?
- 20 years
- 12.42 years
- 10 years
- 13 years
Answer
B. 12.42 years
Solution
F=A(1+i)n-1/i (1.08)n=1+Fi/A=1+ 1,000,000(0.08)50,000=2.6. So n= 2.6/ 1.08=12.42 years.
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