A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $ 12,000 nine years from now. The money needed is to be provided by setting up an account into which equal deposits are made at the end of each year for 9 years. Find the annual deposit ( All interest is at 7 percent compounded annually.)
A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $ 12,000 nine years from now. The money needed is to be provided by setting up an account into which equal deposits are made at the end of each year for 9 years. Find the annual deposit ( All interest is at 7 percent compounded annually.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $ 12,000 nine years from now. The money needed is to be provided by setting up an account into which equal deposits are made at the end of each year for 9 years. Find the annual deposit ( All interest is at 7 percent compounded annually.)
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