What equal annual contribution must it make

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Reference no: EM131168316

The Bauxton Company needs to save $10 million to discharge a $10 million mortgage loan that matures on 31 December 2017.

To discharge this mortgage, the company plans to put a fixed amount into an account at the end of each year for 10 years, with the first payment occurring on 31 December 2008.

The Bauxton Company expects to earn 9% annually on the money in this account.

What equal annual contribution must it make to this account to accumulate the $10 million by 31 December 2017?

Reference no: EM131168316

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