If an accumulation of $700 is desired at the end of 4 years, what amount must be deposited now now to accomplish that goal, assuming an 8% interest rate, compounded annually?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Financial Accounting Question

If an accumulation of $700 is desired at the
end of 4 years, what amount must be
deposited now
now to accomplish that goal,
assuming an 8% interest rate, compounded
annually?
Transcribed Image Text:If an accumulation of $700 is desired at the end of 4 years, what amount must be deposited now now to accomplish that goal, assuming an 8% interest rate, compounded annually?
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