Jerry Rockness needs $40,000 to pay off a loan due on December 31, 2025. His plans included
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Question:
Jerry Rockness needs $40,000 to pay off a loan due on December 31, 2025. His plans included the making of 10 annual deposits beginning on December 31, 2016, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of $4,000 each on December 31, 2016, 2017, and 2018, which have been earning interest at 10% compounded annually.
Required:
What is the equal amount of each of the next 7 deposits for the period December 31, 2019, to December 31, 2025, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?
Related Book For
Personal Finance
ISBN: 978-0077861643
11th edition
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
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