On January 1, 2021, New Spaghetti Co. adopted a plan to accumulate P50,000,000 by December 31, 2030. New Spaghetti plans to make 10 equal annual deposits that will earn interest at 5% compounded annually. Annual deposit will to be made beginning January 1, 2021. How much should be deposited by the entity overy yoar? P30,695,662.68 P3,975,228.75 P3,785,932.14 O P32,230,445.81
On January 1, 2021, New Spaghetti Co. adopted a plan to accumulate P50,000,000 by December 31, 2030. New Spaghetti plans to make 10 equal annual deposits that will earn interest at 5% compounded annually. Annual deposit will to be made beginning January 1, 2021. How much should be deposited by the entity overy yoar? P30,695,662.68 P3,975,228.75 P3,785,932.14 O P32,230,445.81
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On January 1, 2021, New Spaghetti Co. adopted a plan to accumulate P50,000,000
by December 31, 2030. New Spaghetti plans to make 10 equal annual deposits that
will earn interest at 5% compounded annually. Annual deposit will to be made
beginning January 1, 2021.
How much should be deposited by the entity every year?
O P30,695,662.68
O P3,975,228.75
O P3,785,932.14
P32,230,445.81](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18d4aeb8-5ab9-4600-8133-5a61df177896%2Fbc3c3d70-304e-43e5-9f14-86f09202f6c1%2Ffp3izg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, New Spaghetti Co. adopted a plan to accumulate P50,000,000
by December 31, 2030. New Spaghetti plans to make 10 equal annual deposits that
will earn interest at 5% compounded annually. Annual deposit will to be made
beginning January 1, 2021.
How much should be deposited by the entity every year?
O P30,695,662.68
O P3,975,228.75
O P3,785,932.14
P32,230,445.81
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