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The facility manager needs to make quarterly deposits to finance a capital improvement project that requires $1M at the end o
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Answer #1

Rate per month =12%/12 =1%
PV of $1 million and $2 million deposits =1000000/(1+1%)^24+2000000/(1+1%)^36 =2185416.0267

Effective quarterly rate =(1+Monthly Rate)^3-1 =(1+1%)^3-1 =3.03010%
Number of Periods =3*4 =12
The amount of quarterly deposits using annuity due =PV/((1+r)*(1-(1+r)^-n)/r) =2185416.0267/((1+3.0301%)*(1-(1+3.03010%)^-12)/3.0301% =213,477.54

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