1. How much must be deposited at the beginning of each year in an account that pays...

Question:

1. How much must be deposited at the beginning of each year in an account that pays 8%, compounded annually, so that the account will contain $24,000 at the end of 5 years?
2. What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays 7.8%, compounded semiannually, so that the account will have a of $120,000 at the end of 15 years?
Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...