You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the first payment being made a year from today - into a bank account that pays 7% annual interest. Your last deposit will be less than $1,450 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number. ________year(s) How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $________
You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the first payment being made a year from today - into a bank account that pays 7% annual interest. Your last deposit will be less than $1,450 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number. ________year(s) How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $________
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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Question
You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the first payment being made a year from today - into a bank account that pays 7% annual interest. Your last deposit will be less than $1,450 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number.
________year(s)
How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent.
$________
Expert Solution
Step 1
Given:
Interest rate = 7% = 0.07
Future value (FV) = $10000
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