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The abc company has contracted to make the following

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The ABC Company has contracted to make the following payments; $10,000 immediately; $1,000 at the end of year 1; $1,500 at the end of year 2; $2,000 at the end of year 3; $2,500 at the end of year 4; and $3,000 at the end of year 5. What fixed amount of money should the company plan to set aside each year, at 8% interest per year, compounded annually, in order to make the above payments? Ans: $4,427.82.

Reference no: EM13378116

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