Today you open an account with a $15,200 deposit that earns 14.20% compounded annually. You've set...

Transcribed Image Text:

Today you open an account with a $15,200 deposit that earns 14.20% compounded annually. You've set a target for the account so that in exactly 6 years its balance will be $43,500. To reach the target you'll adjust the balance annually; each year's adjustment will be exactly the same amount and the first adjustment occurs exactly one year from now. After the last annual adjustment in exactly 6 years, and crediting of that year's interest, the account balance exactly equals the target. Describe the annual Today you open an account with a $15,200 deposit that earns 14.20% compounded annually. You've set a target for the account so that in exactly 6 years its balance will be $43,500. To reach the target you'll adjust the balance annually; each year's adjustment will be exactly the same amount and the first adjustment occurs exactly one year from now. After the last annual adjustment in exactly 6 years, and crediting of that year's interest, the account balance exactly equals the target. Describe the annual

Answer rating: 100% (QA)

To calculate the annual adjustment amount needed to reach the target balance of 43500 in 6 years we ... View the full answer