On January 1, 2022, Charis Company adopted a plan to accumulate funds for a new building to be erected beginningJanuary 1, 2026 at an estimated cost of P20,000,000. The entity intends to make four equal annual deposits in a fundbeginning December 31, 2022 that will earn interest at 12% compounded annually. The future value of an ordinaryannuity of 1 at 12% for four periods is 4.78, and the future value of an annuity of 1 in advance at 12% for four periodsis 5.35. What is the annual deposit to the fund?A. 5,000,000B. 4,184,100C. 3,738,318D. 3,149,606

In this question, we have to find out the annual deposit to the fund.

Answered: On January 1, 2022, Charis Company…

On January 1, 2022, Charis Company adopted a plan anuary 1, 2026 at an estimated cost of P20,000,000 eginning December 31, 2022 that will earn interes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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