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Your company must make a $500,000 balloon payment on a lease 2 years and 9 months from today. You have

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Your company must make a $500,000 balloon payment on a lease 2 years and 9 months from today. You have been directed to deposit an amount of money quarterly, beginning today, to provide for the $500,000 payment. The account pays 4% per year, compounded quarterly. What is the required quarterly deposit? Note: Lease payments are due at beginning of the quarter.

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A diagram is essential to properly see the timing of the 11 deposits Th…View the full answer


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Had an experience as an external auditor in Ernst & Young Philippines and currently a Corporate Accountant in a consultancy company providing manpower to a 5-star hotel in Makati, Philippines, Makati Diamond Residences
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Engineering Economics

Engineering Economics

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

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Question Posted: March 04, 2010 03:43:13
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