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An enterprise needs to set aside a fund to meet the following future annuity payments to an individual: £1450 paid at the beginning of each year for the first 12 years; followed by £1500 paid at the beginning of each year up until year 18 (inclusive). Assuming an effective rate of interest of 5.4% pa throughout the entire period, how much total fund the company needs to hold today in order to meet these payments? no tables, only formulas, please

An enterprise needs to set aside a fund to meet the following future annuity payments to an individual: £1450 paid at the beginning of each year for the first 12 years; followed by £1500 paid at the beginning of each year up until year 18 (inclusive). Assuming an effective rate of interest of 5.4% pa throughout the entire period, how much total fund the company needs to hold today in order to meet these payments? no tables, only formulas, please

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 7MC: Using the information provided, what transaction represents the best application of the present...
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An enterprise needs to set aside a fund to meet the following future annuity payments to an individual: £1450 paid at the beginning of each year for the first 12 years; followed by £1500 paid at the beginning of each year up until year 18 (inclusive).

Assuming an effective rate of interest of 5.4% pa throughout the entire period, how much total fund the company needs to hold today in order to meet these payments? no tables, only formulas, please

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