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Korvikt [17]
3 years ago
6

The Aggarwal Corporation needs to save $10 million to retire a $10 million mortgage that matures in 10 years. To retire this mor

tgage, the company plans to put a fixed amount into an account at the end of each year for 10 years, with the first payment occuring at the end of 1 year. The Aggarwal Corporation expects to earn 9 percent annually on the money in this account. What equal annual contribution must it make to this account to accumulate the $10 million in 10 years?
Business
1 answer:
Kaylis [27]3 years ago
7 0
See the formula of the future value of annuity ordinary through Google
Solve for PMT
PMT=10,000,000÷(((1+0.09)^(10)
−1)÷(0.09))=658,200.89
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