Arnie agrees to contribute $2,300 to the road fund at the end of each year for the next 12 years. Jack wants to match Arnie's contribution, but he wants to make a lump-sum contribution today. If the current interest rate is 3.5% compounded annually, how much should Jack deposit to equal Arnie's annual deposits? (Round your answer to the nearest cent.)
Arnie agrees to contribute $2,300 to the road fund at the end of each year for the next 12 years. Jack wants to match Arnie's contribution, but he wants to make a lump-sum contribution today. If the current interest rate is 3.5% compounded annually, how much should Jack deposit to equal Arnie's annual deposits? (Round your answer to the nearest cent.)
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Arnie agrees to contribute $2,300 to the road fund at the end of each year for the next 12 years. Jack wants to match Arnie's contribution, but he wants to make a lump-sum contribution today. If the current interest rate is 3.5% compounded annually, how much should Jack deposit to equal Arnie's annual deposits? (Round your answer to the nearest cent.)
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