Milo Corp. wants to accumulate $ 500,000 for a payment that will become due in 5 years. That is , at the end of 5 years it will have to pay this amount. It intends to make a deposit of constant amount every year for the next 5 years, starting at the end of the first year. The deposit earns an interest of 8% annually. What is the amount that Milo Corp. should save every year? $80,965.0 $78,915.03 $85,228.23 $85,678.09

Milo Corp. wants to accumulate $ 500,000 for a payment that will become due in 5 years. That is , at the end of 5 years it will have to pay this amount. It intends to make a deposit of constant amount every year for the next 5 years, starting at the end of the first year. The deposit earns an interest of 8% annually. What is the amount that Milo Corp. should save every year? $80,965.0 $78,915.03 $85,228.23 $85,678.09

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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