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?

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  • CreatedOctober 31, 2014
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