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.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
Related questions
Question
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.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning