Sophie has already saved $14,150 in her RRSP today and she plans to continue to add on equal deposits at the end of every year for the next 7 years. What annual payment is required to accumulate $70,000 in total at the end of the 7 years if the nominal rate of return on the investment is 6.33% compounded semi-annually? Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report PMT accurate to the nearest cent. P/Y= C/Y= N= I/Y= PV = $ PMT= $ FV = $ The size of each annual payment required is (enter a positive value) $
Sophie has already saved $14,150 in her RRSP today and she plans to continue to add on equal deposits at the end of every year for the next 7 years. What annual payment is required to accumulate $70,000 in total at the end of the 7 years if the nominal rate of return on the investment is 6.33% compounded semi-annually? Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report PMT accurate to the nearest cent. P/Y= C/Y= N= I/Y= PV = $ PMT= $ FV = $ The size of each annual payment required is (enter a positive value) $
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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Question
![esc
1
i
Sophie has already saved $14,150 in her RRSP today and she plans to continue to add
on equal deposits at the end of every year for the next 7 years. What annual payment is
required to accumulate $70,000 in total at the end of the 7 years if the nominal rate of
return on the investment is 6.33% compounded semi-annually?
Enter the future value as a positive value in the FV box below.
Enter PV and PMT as positive or negative values based on FV being positive.
Report PMT accurate to the nearest cent.
P/Y =
C/Y=
N=
I/Y=
PV = $
PMT = $
FV = $
The size of each annual payment required is
(enter a positive value) $
Submit Question
!
1
Q
A
6²
F1
@
2
20
F2
W
#
3
E
80
F3
$
4
a
F4
R
%
5
e
F5
T
A
6
si
Y
&
1
7
8:
F7
U
* 00
8
DI
FE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1763e724-2121-467f-836a-21a0640e783d%2Fea57adea-0ce2-4839-9b3b-d28cf9286ebd%2Foyj12oy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:esc
1
i
Sophie has already saved $14,150 in her RRSP today and she plans to continue to add
on equal deposits at the end of every year for the next 7 years. What annual payment is
required to accumulate $70,000 in total at the end of the 7 years if the nominal rate of
return on the investment is 6.33% compounded semi-annually?
Enter the future value as a positive value in the FV box below.
Enter PV and PMT as positive or negative values based on FV being positive.
Report PMT accurate to the nearest cent.
P/Y =
C/Y=
N=
I/Y=
PV = $
PMT = $
FV = $
The size of each annual payment required is
(enter a positive value) $
Submit Question
!
1
Q
A
6²
F1
@
2
20
F2
W
#
3
E
80
F3
$
4
a
F4
R
%
5
e
F5
T
A
6
si
Y
&
1
7
8:
F7
U
* 00
8
DI
FE
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