If P5000.00 is invested at the end of each quarter for 6 years, at an interest...

If P5000.00 is invested at the end of each quarter for 6 years, at an interest rate of 7% compounded bimonthly, what does the total peso amount available 3 years after the last deposit? Draw Cash flow diagram

Expert Solution

Ans:

Please find attached Sheet below, Formulas sheet is also attached for learning.

Final balance available 3 years after the last deposit : $182,262.57 or $182,263.

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Quarter	Beginning of quarter (A)	Total amount at beginning (B)	Interest @7% per annum compounded Bimonthly on (C)	Amount Invested (D)	End Of Quarter (B + C D)
1	-	-	-	5,000.00	5,000.00
2	5,000.00	5,000.00	88.14	5,000.00	10,088.14
3	10,088.14	10,088.14	177.83	5,000.00	15,265.98
4	15,265.98	15,265.98	269.11	5,000.00	20,535.09
5	20,535.09	20,535.09	361.99	5,000.00	25,897.08
6	25,897.08	25,897.08	456.52	5,000.00	31,353.60
7	31,353.60	31,353.60	552.70	5,000.00	36,906.30
8	36,906.30	36,906.30	650.59	5,000.00	42,556.89
9	42,556.89	42,556.89	750.20	5,000.00	48,307.09
10	48,307.09	48,307.09	851.56	5,000.00	54,158.65
11	54,158.65	54,158.65	954.71	5,000.00	60,113.36
12	60,113.36	60,113.36	1,059.68	5,000.00	66,173.05
13	66,173.05	66,173.05	1,166.51	5,000.00	72,339.55
14	72,339.55	72,339.55	1,275.21	5,000.00	78,614.76
15	78,614.76	78,614.76	1,385.83	5,000.00	85,000.59
16	85,000.59	85,000.59	1,498.40	5,000.00	91,498.99
17	91,498.99	91,498.99	1,612.95	5,000.00	98,111.94
18	98,111.94	98,111.94	1,729.53	5,000.00	1,04,841.47
19	1,04,841.47	1,04,841.47	1,848.16	5,000.00	1,11,689.63
20	1,11,689.63	1,11,689.63	1,968.88	5,000.00	1,18,658.50
21	1,18,658.50	1,18,658.50	2,091.72	5,000.00	1,25,750.23
22	1,25,750.23	1,25,750.23	2,216.74	5,000.00	1,32,966.96
23	1,32,966.96	1,32,966.96	2,343.96	5,000.00	1,40,310.92
24	1,40,310.92	1,40,310.92	2,473.42	5,000.00	1,47,784.33
25	1,47,784.33	1,47,784.33	2,605.16	-	1,50,389.49
26	1,50,389.49	1,50,389.49	2,651.08	-	1,53,040.57
27	1,53,040.57	1,53,040.57	2,697.81	-	1,55,738.39
28	1,55,738.39	1,55,738.39	2,745.37	-	1,58,483.76
29	1,58,483.76	1,58,483.76	2,793.77	-	1,61,277.53
30	1,61,277.53	1,61,277.53	2,843.02	-	1,64,120.54
31	1,64,120.54	1,64,120.54	2,893.13	-	1,67,013.68
32	1,67,013.68	1,67,013.68	2,944.13	-	1,69,957.81
33	1,69,957.81	1,69,957.81	2,996.03	-	1,72,953.84
34	1,72,953.84	1,72,953.84	3,048.85	-	1,76,002.69
35	1,76,002.69	1,76,002.69	3,102.59	-	1,79,105.29
36	1,79,105.29	1,79,105.29	3,157.29	-	1,82,262.57

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