. The CIT School of Engineering needs P20,000,000.00 to pay for the building renovation in 6 years. To generate this sum, a sinking fund consisting of four annual payments is established now. For tax purposes, no further payments will be made after four years. What are the necessary payments if money is worth 18% per annum? a. 1.834 M b. 2.754 M c. 3.162 M d. 4.186 M
. The CIT School of Engineering needs P20,000,000.00 to pay for the building renovation in 6 years. To generate this sum, a sinking fund consisting of four annual payments is established now. For tax purposes, no further payments will be made after four years. What are the necessary payments if money is worth 18% per annum? a. 1.834 M b. 2.754 M c. 3.162 M d. 4.186 M
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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7. The CIT School of Engineering needs P20,000,000.00 to pay for the building
renovation in 6 years. To generate this sum, a sinking fund consisting of four
annual payments is established now. For tax purposes, no further payments will
be made after four years. What are the necessary payments if money is worth
18% per annum?
a. 1.834 M
b. 2.754 M
c. 3.162 M
d. 4.186 M
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