XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of P5,000,000.00. To accumulate this amount, it wil make 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 than originally intended to an estimated cost of P8,000,000.00 What should be the annual deposit for the last five vears?
XYZ plans to construct an additional building at the end of 10 years fo an estimated cost of P5,000,000.00. To accumulate this amount, it wil make 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 than originally intended to an estimated cost of P8,000,000.00 What should be the annual deposit for the last five vears?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:3. XYZ plans to construct an additional building at the end of 10 years for
an estimated cost of P5,000,000.00. To accumulate this amount, it will
make 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 than
originally intended to an estimated cost of P8,000,000.00 What should
be the annual deposit for the last five years?
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