Question: The Aggarwal Corporation needs to save 10 million to retire
The Aggarwal Corporation needs to save $10 million to retire a $10 million mortgage that matures in 10 years. To retire this mortgage, the company plans to put a fixed amount into an account at the end of each year for 10 years. The Aggarwal Corporation expects to earn 9 percent annually on the money in this account. What equal annual contribution must the firm make to this account to accumulate the $10 million by the end of 10 years?
Answer to relevant QuestionsThe Knutson Corporation needs to save $15 million to retire a $15 million mortgage that matures in 10 years. To retire this mortgage, the company plans to put a fixed amount into an account at the end of each year for 10 ...Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $21,074.25 that will pay them $3,000 per year for 20 years. They ...You plan to buy property in Florida five years from today. To do this, you estimate that you will need $30,000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits in your ...Determine the present value of an ordinary annuity of $1,000 per year for 10 years, assuming it earns 10 percent. Assume that the first cash flow from the annuity comes at the end of Year 8 and the final payment at the end ...Let’s say you deposited $160,000 in a 529 plan (a tax-advantaged college savings plan) hoping to have $420,000 available 12 years later when your first child starts college. However, you didn’t invest very well, and two ...
Post your question