Assume that you will need 60million shillings in your specialsaving account five years fromnow, to invest in a valuelincreasing project. You areprepared to make three equalannual deposits into the accountat the end of each year in orderto achieve this saving target (firstinstalment begins at the end ofyear 2 from now). There is noinflation and the bank imposedno charges at all on savingsaccount but it pays you intereston the balance at 9percent perannum. What amount must youdeposit in the account at eachyear - end?

Assume that you will need 60million shillings in your specialsaving account five years fromnow, to invest in a valuelincreasing project. You areprepared to make three equalannual deposits into the accountat the end of each year in orderto achieve this saving target (firstinstalment begins at the end ofyear 2 from now). There is noinflation and the bank imposedno charges at all on savingsaccount but it pays you intereston the balance at 9percent perannum. What amount must youdeposit in the account at eachyear - end?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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