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Homework:Unit 5 Lab Assignment Question 11, P6-22 (similar to) Part 3 of 4 HW Score: 85%, 17 of 20 points Points: 0.5 of 1 Save
Homework:Unit 5 Lab Assignment
Question 11, P6-22 (similar to)
Part 3 of 4
HW Score: 85%, 17 of 20 points
Points: 0.5 of 1
Save
Question content area top
Part 1
(Comprehensive problem)You would like to have
$70,000
in
16
years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn
10
percent interest compounded annually. Your first payment will be made at the end of the year.
c.If you deposit $20,000 received at the end of year 5 in the bank, how much will it grow to in the account at the end of year
16?
a.How much must you deposit annually to accumulate this amount?
b.If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be? (Assume you can earn
10
percent on this deposit.)c.At the end of year 5, you will receive
$20,000
and deposit it in the bank in an effort to reach your goal of
$70,000
at the end of year
16.
In addition to the lump-sum deposit, how much must you invest in
16
equal annual deposits to reach your goal? (Again, assume you can earn
10
percent on this deposit.)
*****ONLY C.
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