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A company manufacturing FMCG is experiencing a surge in the demand and decides to expand its facility after five years. It forecasts that $500,000 would
A company manufacturing FMCG is experiencing a surge in the demand and decides to expand its facility after five years. It forecasts that $500,000 would be needed in the fifth year to purchase land and construct factory building and $250,000 in the following year to purchase necessary machines. In order to meet these expenses, the company is planning to set aside an equal amount every quarter from its profits. However, after three years, the company doubles the savings but invests once in six months. Determine the amount the company has to save if the interest rate is 12% per annum compounded quarterly during the first three years, 12% p.a compounded monthly during the next two years and 12% p.a. compounded semi-annually during the last one year.
A company manufacturing FMCG is experiencing a surge in the demand and decides to expand its facility after five years. It forecasts that $500,000 would be needed in the fifth year to purchase land and construct factory building and $250,000 in the following year to purchase necessary machines. In order to meet these expenses, the company is planning to set aside an equal amount every quarter from its profits. However, after three years, the company doubles the savings but invests once in six months. Determine the amount the company has to save if the interest rate is 12% per annum compounded quarterly during the first three years, 12% p.a compounded monthly during the next two years and 12% p.a. compounded semi-annually during the last one year.
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