14,000

3. Your company decides to purchase an item Comfort in 20 years. The current market value of Comfort is 150BD. The inflation rate is 3%. To finance the purchase, your company deposits 14 into an account at the beginning of each year for 10 years. During the last 10 years an additional amount of P is deposited at the end of each years. The annual effective rate is 12%. (A) Compute the accumulated amopunt provided by the deposits of the first 10 years. (2 marks) (B) Compute the accumulated amopunt provided by the additional P deposits. ( 2 marks) (C) What should be the value of P for your company to be able to purchase the item Comfort? (2 marks) 3. Your company decides to purchase an item Comfort in 20 years. The current market value of Comfort is 150BD. The inflation rate is 3%. To finance the purchase, your company deposits 14 into an account at the beginning of each year for 10 years. During the last 10 years an additional amount of P is deposited at the end of each years. The annual effective rate is 12%. (A) Compute the accumulated amopunt provided by the deposits of the first 10 years. (2 marks) (B) Compute the accumulated amopunt provided by the additional P deposits. ( 2 marks) (C) What should be the value of P for your company to be able to purchase the item Comfort? (2 marks)