The lock box department at Bank 21 handles the processing of monthly loan payments to the bank, monthly and quarterly premium pa
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Answer:
Ans. The equal amount of money that Aggarwal Corporation needs to put into this account, for 10 years, at the end of each year is $658,200.90
Explanation:
Hi, in order to find the equal amount of money to put into this account, that returns 9% annually, for ten years, and to be paid at the end of each year, we need to use the following formula and solve for "A".
Where:
Future Value= $10,000,000
r= 0.09
n=10
So, everything should look like this.
The answer is: Aggarwal Corporation needs to save $658,200.90 every year, at the end of the year, for ten years in order to get $10,000,000 in ten years to retire its mortgage.
Best of luck.