Draw the cash flow diagram for each problem and use interest rate with five decimal places. An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 12% compounded continuously. Ten years after the last deposit, a withdrawal $15,000 per year for 10 years are withdrawn from the account. How much would be the six annual deposits?

Draw the cash flow diagram for each problem and use interest rate with five decimal places. An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 12% compounded continuously. Ten years after the last deposit, a withdrawal $15,000 per year for 10 years are withdrawn from the account. How much would be the six annual deposits?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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