6)

JBI Feed company just hired you as an analyst and they have a time value of money problem for you on day one! The company has a $65,000 liability it must pay four years from today. The company is opening a savings account so that the entire amount will be available when this debt comes due. The plan is to make an initial deposit today and then deposit an additional $10,000 at the end of each of the four years. The account pays a 4.5 percent rate of return. How much does the firm need to deposit today?

answer choices

$19,500.54

$17,536.00

$18,631.23

$19,450.88

$16,500.00