You want to have $40,000 in your savings account 6 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.75 percent interest, what amount must you deposit each year?

You want to have $40,000 in your savings account 6 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.75 percent interest, what amount must you deposit each year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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You want to have $40,000 in
your savings account 6 years
from now, and you're prepared
to make equal annual deposits
into the account at the end of
each year. If the account pays
7.75 percent interest, what
amount must you deposit each
year?

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