Milo Corp. wants to accumulate $ 500,000 for a payment that will become due in 5 years. That is , at the end of 5 years it will have to pay this amount. It intends to make a deposit of constant amount every year for the next 5 years, starting at the end of the first year. The deposit earns an interest of 8% annually. What is the amount that Milo Corp. should save every year? a)$80,965.0 b)$78,915.03 c)$85,228.23 d)$85,678.09

Milo Corp. wants to accumulate $ 500,000 for a payment that will become due in 5 years. That is , at the end of 5 years it will have to pay this amount. It intends to make a deposit of constant amount every year for the next 5 years, starting at the end of the first year. The deposit earns an interest of 8% annually. What is the amount that Milo Corp. should save every year? a)$80,965.0 b)$78,915.03 c)$85,228.23 d)$85,678.09

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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