ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of P15,000,000.00. To accumulate this amount, it will have to make equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P24,000,000.00. What should be the annual deposit for the last 5 years?Answer. P2,203,175.82 5. ELJ Corporation plans to construct its own building at the end of 10 years foran estimated cost of P15,000,000.00. To accumulate this amount, it will haveto make equal year end deposits in a fund earning 13%. However, at the endof the 5th year, it was decided to have a larger building that originally intendedto an estimated cost of P24,000,000.00. What should be the annual deposit forthe last 5 years?

Given: Years =10 Cost = P15,000,000 Interest rate = 13% Future value = P24,000,000

ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of P15,000,000.00. To accumulate this amount, it will have to make equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P24,000,000.00. What should be the annual deposit for the last 5 years? Answer. P2,203,175.82

ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of P15,000,000.00. To accumulate this amount, it will have to make equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P24,000,000.00. What should be the annual deposit for the last 5 years? Answer. P2,203,175.82

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 23E

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