Assume that a deposit to be made at year zero into an account that will earn 8% compounded annually. It is desired to withdraw ₹ 6,000 three years from now and ₹ 8,000 six years from now. What is the size of the year zer
CS Executive · Corporate and Management Accounting · PYQS · December 2024
Assume that a deposit to be made at year zero into an account that will earn 8% compounded annually. It is desired to withdraw ₹ 6,000 three years from now and ₹ 8,000 six years from now. What is the size of the year zero deposit that will produce these further payment. (PV factor 8% for 3 year = 0.794 and PV factor 8% for 6 year = 0.630).
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
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