The aggarwal corporation needs to save $10 million to retire a $10 million mortgage that matures in 10 years. to retire this mortgage, the company plans to put a fixed amount into an account at the end of each year for 10 years, with the first payment occuring at the end of 1 year. the aggarwal corporation expects to earn 9 percent annually on the money in this account. what equal annual contribution must it make to this account to accumulate the $10 million in 10 years?

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?