. A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To accumulate this amount, he will make equal year-end deposits in a fund earning 12% compounded annually. However, at the end of the 2nd year, he married his girlfriend and decided to build a 250,000 worth house on the lot he is planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80

. A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To accumulate this amount, he will make equal year-end deposits in a fund earning 12% compounded annually. However, at the end of the 2nd year, he married his girlfriend and decided to build a 250,000 worth house on the lot he is planning to buy. What should be his annual deposits for the last 3 years? ANS. P 163,810.80

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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