A firm will make the following disbursements: Php 150,000.00 on December 31, 1991, Php 200,000.00 on December 31, 1992, Php 300,000.00 on December 31, 1993. To accumulate these sums, a sinking fund is established by making equal year-end deposits starting December 31, 1986 up to the end of 1993. If the fund earns 9% interest compounded annually, what is the required amount of the annual deposit?
A firm will make the following disbursements: Php 150,000.00 on December 31, 1991, Php 200,000.00 on December 31, 1992, Php 300,000.00 on December 31, 1993. To accumulate these sums, a sinking fund is established by making equal year-end deposits starting December 31, 1986 up to the end of 1993. If the fund earns 9% interest compounded annually, what is the required amount of the annual deposit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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