Question: You need to accumulate $10,000. To do so, you plan to make deposits of $1,250 per yearwith the first payment being made a year from

You need to accumulate $10,000. To do so, you plan to make deposits of $1,250 per year—with the first payment being made a year from today—into a bank account that pays 12% annual interest. Your last deposit will be less than $1,250 if less is 0needed to round out to $10,000. How many years will it take you to reach your $10,000 goal, and how large will the last deposit be?

Step by Step Solution

★★★★★

3.37 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

With a financial calculator get a ballpark estimate of the years by en... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

49-B-C-F-I-S (30).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

How many years will it take an investment to triple if the interest rate is 6% compounded annually?

How many years will it take an investment to triple if the interest rate is 6% compounded at the given intervals? (a) Quarterly (b) Monthly (c) Continuously

How many years will it take to double your investment of $2,000 if it has an interest rate of 6% compounded annually?

SEE ATTACHED DOCUMENT. I need help with assignment PROBLEM SET 1 : Mnagerial Finance INCOME STATEMENT(2-3) Molteni Motors Inc. recently reported $16 million of net income. Its EBIT was $13 million,...

You need to accumulate $10,000. To do so, you plan to make deposits of $1,250 peryear with the first payment being made a year from today into a bank account that pays 12% annual interest .Your last...

The following information relates to Link Close Corporation: 1. Balances at 28 February 2004: R Land and buildings at cost 250 000 Vehicle (carrying amount) 15 000 Inventory 28 February 2004 117 000...

Need ONLY an answer to Part C, step 1, questions 1 and 3. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company Assigned to you Find the most...

Locate and use an audited annual financial statement STEP 1: The Company Assigned to you Find the most recent audited annual financial statement online for the Canadian public company assigned to the...

Need a sample answer for part C. Looking for a tutor to answer this question for the tutor credits I have. Would be a great help if someone would work with this price. Thanks a lot, really appreciate...

Bank A pays 4% interest compounded annually on deposits, while Bank B pays 3.5% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? b. Could your choice of banks be influenced...

A balance sheet at December 31, 2011, for the Beck, Dee, and Lynn partnership is summarized as follows: Dee is retiring from the partnership. The partners agree that partnership assets, excluding...

The second term of a geometric progression is 6.5 and the sum to infinity is 26. Find the common ratio and the first term.

y''' - y = e2x ex General solution a Indefinite coefficient method? b Method of changing parameters?

Figure 1 shows the three phases V-t graph in Turkey. Please write the indicated values with their units in boxes and Voltage - time function of each phase in table below. Please write the units in...

In figure, a magnetic flux of Fis generated with a constant current of i. The core material used has a relative permeability of 4000. Assuming that the mean cross sectional area that the magnetic...

1. The amount of water discharged by the Davao River has changed over time in roughly a straight-line pattern. A regression line for predicting water discharged (in cubic kilometers) during a given...

On adding one mole of hydrochloric acid to one mole of calcium hydroxide, the resulted solution will be a. Acidic b. Basic c. Neutral

In 1972, Donald and Joyce Carnahan purchased a 1-acre lot located on a 22- acre lake. The purchase included a portion of the lake bed. The Carnahans used the lake for recreational activity in both...

Define each of the following terms: a. Project cash flow; accounting income b. Incremental cash flow; sunk cost; opportunity cost; externality; cannibalization; expansion project; replacement project...

River Cruises is all-equity-financed with 100,000 shares. It now proposes to issue $120,000 of debt at an interest rate of 11% and use the proceeds to repurchase 12,000 shares at $10 per share....

Could you please help me understand this answer please? Shouldn't the variable c?2 that they included in the variance affect the whole equation? (e.g.) Var(X)(x?2)= c?2(E[X))..... 615 pullits (ylauEu...

85% 1:46 The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Each unit requires 0.25 direct labor-hours,...