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Step 7 Part (3): Calculation of new annual deposable amount: Answer: New annual deposable amount is $5,823.77 Computation of future value: (1.0830 – 1 30–20 Future value =$1,500× + $25,000 × (1.08)*- 0.08 = $1,500 × (113.2832111)+$53,973.12493 = $223,897.9416 Step 8 Computation of new deposable amount: (1+i)" –1 + FV Future value=A × New i 30 (1+0.08)*" – $883.633.2667 = A x + $223,897.94 0.08 Annual deposit = S5,823.77

Step 7 Part (3): Calculation of new annual deposable amount: Answer: New annual deposable amount is $5,823.77 Computation of future value: (1.0830 – 1 30–20 Future value =$1,500× + $25,000 × (1.08)*- 0.08 = $1,500 × (113.2832111)+$53,973.12493 = $223,897.9416 Step 8 Computation of new deposable amount: (1+i)" –1 + FV Future value=A × New i 30 (1+0.08)*" – $883.633.2667 = A x + $223,897.94 0.08 Annual deposit = S5,823.77

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Hi, How did you get the amount of $5,823.77 for the annual deposit?

What is the value of the A .Thanks.

Step 7 Part (3): Calculation of new annual deposable amount: Answer: New annual deposable amount is $5,823.77 Computation of future value: (1.0830 – 1 30–20 Future value =$1,500× + $25,000 × (1.08)*- 0.08 = $1,500 × (113.2832111)+$53,973.12493 = $223,897.9416 Step 8 Computation of new deposable amount: (1+i)" –1 + FV Future value=A × New i 30 (1+0.08)*" – $883.633.2667 = A x + $223,897.94 0.08 Annual deposit = S5,823.77
Transcribed Image Text:Step 7 Part (3): Calculation of new annual deposable amount: Answer: New annual deposable amount is $5,823.77 Computation of future value: (1.0830 – 1 30–20 Future value =$1,500× + $25,000 × (1.08)*- 0.08 = $1,500 × (113.2832111)+$53,973.12493 = $223,897.9416 Step 8 Computation of new deposable amount: (1+i)" –1 + FV Future value=A × New i 30 (1+0.08)*" – $883.633.2667 = A x + $223,897.94 0.08 Annual deposit = S5,823.77
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