annuity: A firm will need Rs.300,000 at the end of 3 years to repay a loan....

[furqan]

A firm will need Rs.300,000 at the end of 3 years to repay a loan. The firm decided that it would deposit Rs.20,000 at the start of each quarter during these 3 years into an account. The account would yield 12 percent per annum compounded quarterly during the first year. What rate of interest should it earn in the remaining 2 years to accumulate enough amount in this account to pay the loan at the end of 3 years

 

[Deleted member 4993]

A firm will need Rs.300,000 at the end of 3 years to repay a loan. The firm decided that it would deposit Rs.20,000 at the start of each quarter during these 3 years into an account. The account would yield 12 percent per annum compounded quarterly during the first year. What rate of interest should it earn in the remaining 2 years to accumulate enough amount in this account to pay the loan at the end of 3 years

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