Suppose you will need $50,000 ten years from now. You plan to make seven equal annual deposits

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Suppose you will need $50,000 ten years from now. You plan to make seven equal annual deposits beginning three years from today in an account that yields 11% compounded annually.

How large should the annual deposit be?

Try to use an appropriate annuity formula, and make sure to clearly state any assumptions you make.

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Nov 28, 2023 11:03 PM

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Suppose you will need $50,000 ten years from now. You plan to make seven equal annual deposits

Question:

Expert Answer:

To calculate the annual deposit you can use the future value of an ordin... View the full answer

Financial Accounting and Reporting a Global Perspective

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