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
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
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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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
Transcribed Image Text:3. 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?
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