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You have to repay a liability of $30,000 after 3 years from now. A bank is offering you 9% fixed interest rate for next three years if you deposit equal sum at the end of each month to have exactly $30,000 when the liability is to be paid off. How much you need to deposit into the bank account at the end of each month for next three years? If the bank demands $735 end-of-month deposits for next 3 years?

You have to repay a liability of $30,000 after 3 years from now. A bank is offering you 9% fixed interest rate for next three years if you deposit equal sum at the end of each month to have exactly $30,000 when the liability is to be paid off. How much you need to deposit into the bank account at the end of each month for next three years? If the bank demands $735 end-of-month deposits for next 3 years?

FINANCIAL ACCOUNTING
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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You have to repay a liability of $30,000 after 3 years from now. A bank is offering you 9% fixed interest rate for next three years if you deposit equal sum at the end of each month to have exactly $30,000 when the liability is to be paid off. How much you need to deposit into the bank account at the end of each month for next three years? If the bank demands $735 end-of-month deposits for next 3 years?
Transcribed Image Text:You have to repay a liability of $30,000 after 3 years from now. A bank is offering you 9% fixed interest rate for next three years if you deposit equal sum at the end of each month to have exactly $30,000 when the liability is to be paid off. How much you need to deposit into the bank account at the end of each month for next three years? If the bank demands $735 end-of-month deposits for next 3 years?
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