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Find the lump-sum deposit needed today that will produce payment of $4200 at the end of each year for 12 years where the interest rate is 4.5% compounded annually

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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Question

Find the lump-sum deposit needed today that will produce payment of $4200 at the end of each year for 12 years where the interest rate is 4.5% compounded annually

(Solve with Presents Values with Annuities or Loans and Amortization)

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