How much money must be deposited at the end of each yearin a savings account that pays 9% per year, compoundedannually, in order to have a total of $10 000 at the end of 14years?Compound Amount Factor(F/A, 9%, 14) = 26.0192Capital Recovery Factor(A/P, 9%, 14)= 0.12843317A. $1284.33B. $384.33Present Worth Factor(P/A, 9%, 14) = 23.8708Sinking Fund Factor(A/F, 9%, 14) = 0.03843317C. $418.92D. $207.29

Compounded annually means at the end of every year, interest shall be added back to the principal…

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How much money must be deposited at the end of each year in a savings account that pays 9% per year, compounded annually, in order to have a total of $10 000 at the end of 14 years?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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How much money must be deposited at the end of each year
in a savings account that pays 9% per year, compounded
annually, in order to have a total of $10 000 at the end of 14
years?
Compound Amount Factor
(F/A, 9%, 14) = 26.0192
Capital Recovery Factor
(A/P, 9%, 14)= 0.12843317
A. $1284.33
B. $384.33
Present Worth Factor
(P/A, 9%, 14) = 23.8708
Sinking Fund Factor
(A/F, 9%, 14) = 0.03843317
C. $418.92
D. $207.29

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