In anticipation of a much bigger volume of business after 10 years, a fabrication company purchased an adjacent lot for its expansion program where it hopes to put up a building projected to cost...

In anticipation of a much bigger volume of business after 10 years, a fabrication company purchased an adjacent lot for its expansion program where it hopes to put up a building projected to cost P4,000,000 when it will be constructed 10 years after. To provide for the required capital expense, it plans to put up a sinking fund for the purpose. How much must the company deposit each year if the interest to be earned is computed at 15% Final answer should be P197,008.25