Question 1172775
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            I solve this problem in two steps :



<pre>
1)  Without accounting for inflation,  Php 130,000 compounded annually at 10% annual interest rate become


        {{{130000*(1+0.10)^5}}} = 209,366.30 today's peso.



2)  Accounting for 8% average annual inflation, these 209,366.30 peso actually will be equivalent only


        {{{209366.30/((1+0.08)^5)}}} = 142,491.19 today's peso.    <U>ANSWER</U>
</pre>

Solved.