Question: Why is the answer for number 1 under 2022, when the question is asking for 2023? Also, under what year is the answer for #2? As for numbers 3 and 4, why is the answer under the 2024 one when the question asked for 2023? On January 1, 2021, Danes Inc. adopted a plan to accumulate P10,000,000 by December 31, 2025. A

certain fund earns annual interest of 8%.

Compute for the regular contribution to be made by the entity as well as the balance of the fund at the end

of 2023 given the following independent assumptions:

1.

The first annual payment was made on December 31, 2021.

2.

The first annual payment was made on January 1, 2021.

3.

A one-time contribution was made on December 31, 2021.

4.

A one-time contribution was made on January 1, 2021.

1 Amount to accumulate 10,000,000 1.08 x X X X FVOA factor 5.86660 5.86660 Ans - 1 then divide .08 Annual contribution 1,704,565 Date Interest Contribution Balance 12/31/2020 1,704,565 1,704,565 12/31/2021 136,365 1,704,565 3,545,495 12/31/2022 283,640 1,704,565 5,533,699 12/31/2023 442,696 1,704,565 7,680,960 12/31/2024 614,477 1,704,565 10,000,002 2 Amount to accumulate 10,000,000 1.08 x x x x FVAD factor 6.33593 6.33593 Ans - 1 then divide .08 Semiannual contribution 1,578,300 Ans x 1.08 Date Interest Contribution Balance 1/1/2020 1,578,300 1,578,300 1/1/2021 126,264 1,578,300 3,282,865 1/1/2022 262,629 1,578,300 5,123,794 1/1/2023 409,904 1,578,300 7,111,998 1/1/2024 568,950 1,578,300 9,259,258 1/2/2025 740,741 9,999,998 3 Amount to accumulate 10,000,000 1.08 xxx FV of 1 factor 1.36049 1.36049 One-time contribution 7,350,293 Date Interest Balance 12/31/2020 7,350,293 1.00000 12/31/2021 588,023 7,938,316 1.08000 7,938,316.34 12/31/2022 635,065 8,573,382 1.16640 8,573,381.65 12/31/2023 685,871 9,259,252 1.25971 9,259,252.18 12/31/2024 740,740 9,999,992 1.36049 9,999,992.36 4 Amount to accumulate 10,000,000 1.08 xxxx FV of 1 factor 1.46933000 1.46933 One-time contribution 6,805,823 Date Interest Balance 1/1/2020 6,805,823 12/31/2020 544,456 7,350,289 12/31/2021 588,023 7,938,312 12/31/2022 635,065 8,573,377 12/31/2023 685,870 9,259,247 12/31/2024 740,740 9,999,987