give you $20,000 now. A part-time job will allow you to make six additional deposits, one at the end of each year. If the bank pays 6% interest (compounded annually), how large must your annual deposits be? 20,000 Annual=? 60,000

give you $20,000 now. A part-time job will allow you to make six additional deposits, one at the end of each year. If the bank pays 6% interest (compounded annually), how large must your annual deposits be? 20,000 Annual=? 60,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Problem # 2: You want $60,000 six years from now for a new car, and your grandparents offer to
give you $20,000 now. A part-time job will allow you to make six additional deposits, one at the end
of each year. If the bank pays 6% interest (compounded annually), how large must your annual
deposits be?
60,000
20,000
Tuma
Annual=?

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