-XYZ Inc. plans to construct and additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount it will have equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P8,000,000.00. What should be the annual deposit for the last 5 years?
-XYZ Inc. plans to construct and additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount it will have equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P8,000,000.00. What should be the annual deposit for the last 5 years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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-XYZ Inc. plans to construct and additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount it will have equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P8,000,000.00. What should be the annual deposit for the last 5 years?
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