A civil engineer plans to own a 300 m² lot after 5 years for an estimated cos 570,000. To accumulate this amount, he will make equal year-end deposits i und earning 12% compounded annually. However, at the end of the 2nd year, married his girlfriend and decided to build a 250,000 worth house on the lot he 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 cos 570,000. To accumulate this amount, he will make equal year-end deposits i und earning 12% compounded annually. However, at the end of the 2nd year, married his girlfriend and decided to build a 250,000 worth house on the lot he planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Compute the given problem and provide cashflow diagram.
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9893c72-bec6-4cbd-86f8-2da74c45ddc2%2Fbe2bca50-bfb9-4a56-b941-e908e035485f%2Fbo1iiy_processed.png&w=3840&q=75)
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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