On March 15, 20x1, Ashe Company adopted a plan to accumulate P5,000,000 by September 1, 20x5. Ashe plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually. Ashe made the first deposit on September 1, 20x1. FV of 1 at 10% n-4 1.46 FV of OA of 1 at 10% n-4 4.64 Fv of AD of 1 at 10% n-4 5.11 What is the amount of annual deposit?

On March 15, 20x1, Ashe Company adopted a plan to accumulate P5,000,000 by September 1, 20x5. Ashe plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually. Ashe made the first deposit on September 1, 20x1. FV of 1 at 10% n-4 1.46 FV of OA of 1 at 10% n-4 4.64 Fv of AD of 1 at 10% n-4 5.11 What is the amount of annual deposit?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 20P

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