A firm want to buy anew tank after depositng same amount of money two times in a year for 5 years with nominal interest rate of 6% semiannually deposite will be done from 2022 - 2027. the first payment for the tank will be at the end of 2028 as 100.000$ the second payment will be at the end of 2029 as 250.000$ in todays dollars. Inflation rate is 5% find how much the firm should deposite each time.

A firm want to buy anew tank after depositng same amount of money two times in a year for 5 years with nominal interest rate of 6% semiannually deposite will be done from 2022 - 2027. the first payment for the tank will be at the end of 2028 as 100.000$ the second payment will be at the end of 2029 as 250.000$ in todays dollars. Inflation rate is 5% find how much the firm should deposite each time.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Similar questions

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