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. A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To accumulate this amount, he will make equal year-end deposits in a fund earning 12% compounded annually. However, at the end of the 2nd year, he married his girlfriend and decided to build a 250,000 worth house on the lot he is planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80

. A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To accumulate this amount, he will make equal year-end deposits in a fund earning 12% compounded annually. However, at the end of the 2nd year, he married his girlfriend and decided to build a 250,000 worth house on the lot he is planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Calculate it manually, not in excel. Show complete solution and cash flow diagram. Thank you!

3. A civil engineer plans to own a 300 m2 lot after 5 years for an estimated cost of 570,000. To accumulate this amount, he will make equal year-end deposits in a fund earning 12% compounded annually. However, at the end of the 2nd year, he married his girlfriend and decided to build a 250,000 worth house on the lot he is planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80
Transcribed Image Text:3. A civil engineer plans to own a 300 m2 lot after 5 years for an estimated cost of 570,000. To accumulate this amount, he will make equal year-end deposits in a fund earning 12% compounded annually. However, at the end of the 2nd year, he married his girlfriend and decided to build a 250,000 worth house on the lot he is planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80
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