document.write( "Question 1172775: A man invested Php 130,000 at an interest rate of 10% compounded annually. What will be the final amount of his investment in terms of today's peso after 5 years if inflation remains the same at the rate of 8% per year?\r
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Algebra.Com's Answer #797890 by ikleyn(52812) $\"\"$ $\"About$

You can put this solution on YOUR website!
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\n" ); document.write( "\n" ); document.write( " I solve this problem in two steps :\r
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document.write( "1)  Without accounting for inflation,  Php 130,000 compounded annually at 10% annual interest rate become\r\n" );
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document.write( "         = 209,366.30 today's peso.\r\n" );
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document.write( "2)  Accounting for 8% average annual inflation, these 209,366.30 peso actually will be equivalent only\r\n" );
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document.write( "         = 142,491.19 today's peso.    ANSWER\r\n" );
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