On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,00 by September 1, year 5. ABC plans to make four equal annual deposits to a fund that will learn interest at 10% compounded annually. ABC made the first deposit on September 1, year 1. Future value and future amount factors are as follows: Future value of P1 at 10% for 4 periods (1.46), Future amount of ordinary annuity of P1t 10% for four periods (4.64), Future amount of annuity in advance of P1 at 10% for four periods (5.11). What amount of four annual deposits shall be made?

On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,00 by September 1, year 5. ABC plans to make four equal annual deposits to a fund that will learn interest at 10% compounded annually. ABC made the first deposit on September 1, year 1. Future value and future amount factors are as follows: Future value of P1 at 10% for 4 periods (1.46), Future amount of ordinary annuity of P1t 10% for four periods (4.64), Future amount of annuity in advance of P1 at 10% for four periods (5.11). What amount of four annual deposits shall be made?

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

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...

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