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On January 1, 2020, Carr company adopted a plan to accumulate funds for environmental improvement beginning July 1, 2020, at an estimated cost of P2,000,000. Carr company plans to make for equal annual deposit in a fund that will earn interest an 10% compounded annually.
The first deposit is made on July 1, 2020 and every July thereafter. Future amount factors are as follows:
Required:
Problem 1. Compute the annual deposit to the fund.
Problem 2. Schedule of fund accumulation.
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