Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for 10 years, starting 10 years from today and additionally $5,000 for 5 more years. There is an annual interest rate of 5% per annum in which the fund accumulates and each payment is made at the end of the year. What is the fixed amount?
Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for 10 years, starting 10 years from today and additionally $5,000 for 5 more years. There is an annual interest rate of 5% per annum in which the fund accumulates and each payment is made at the end of the year. What is the fixed amount?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 9RE
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Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for 10 years, starting 10 years from today and additionally $5,000 for 5 more years. There is an annual interest rate of 5% per annum in which the fund accumulates and each payment is made at the end of the year. What is the fixed amount?
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