Travis International has a debt payment of $2.33 million that it must make 5 years from...

 

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Travis International has a debt payment of $2.33 million that it must make 5 years from today. The company does not want to come up with the entire amount at that time, so it plans to make equal monthly deposits into an account starting 1 month from now to fund this liability. If the company can earn a return of 5.28 percent compounded monthly, how much must it deposit each month? A) $38,833.33 B) $36,285.33 C) $34,943.29 D) $34,017.49 E) $33,868.47 Travis International has a debt payment of $2.33 million that it must make 5 years from today. The company does not want to come up with the entire amount at that time, so it plans to make equal monthly deposits into an account starting 1 month from now to fund this liability. If the company can earn a return of 5.28 percent compounded monthly, how much must it deposit each month? A) $38,833.33 B) $36,285.33 C) $34,943.29 D) $34,017.49 E) $33,868.47

Answer rating: 100% (QA)

Answer The correct option is D Solution Information provided i Future value 2... View the full answer