Assume that, starting next year, you will make deposits of $744 each year into a savings account. You will make a total of 6 annual deposits. If the savings account interest rate is 11%, what is the present value of this savings plan?

Assume that you wish to make annual deposits into a savings account. The interest rate offered by the bank is 6%, and you plan to save for the next 8 years. If your goal is for the present value of your savings to be equal to $2,771, how much money must you deposit every year?

Answer rating: 100% (QA)

To calculate the present value of a savings plan with regular deposits we can use ... View the full answer