Answered: P500,000 was deposited 20.15 years ago…

Engineering

Civil Engineering

P500,000 was deposited 20.15 years ago at an interest of 7% compounded semi-annually. How much is the sum now?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 1P

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Concept explainers

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.

Question

P500,000 was deposited 20.15 years ago at an interest of 7% compounded semi-annually. How
much is the sum now?

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