Question
How do I solve for part c in the problem below? Please show all steps for calculating the answerlike I did for for Part B.
How do I solve for part c in the problem below? Please show all steps for calculating the answerlike I did for for Part B. No excel work please.
Part B answer was no - see math below
FV6(CF1) = CF1(1+I)5= 20000(1+6%)5= 20000 (1+0.06)5= $26,764.51
FV6(CF2) = CF2(1+I)4= 20000(1+6%)4= 20000 (1+0.06)4= $25,249.54
FV6(CF3) = CF3(1+I)3= 20000(1+6%)3= 20000 (1+0.06)3= $23,820.32
FV6(CF4) = CF4(1+I)2= 20000(1+6%)2= 20000 (1+0.06)2= $22,472.00
FV6(CF5) = CF5(1+I)1= 20000(1+6%)1= 20000 (1+0.06)1= $21,200.00
FV6(CF6) = CF6(1+I)0= 20000(1+6%)0= 20000 (1+0.06)0= $20,000.00
FV6(Annuity Due) = FV6(CF1) + FV6(CF2) + FV6(CF3) + FV6(CF4) + FV6(CF5) + FV6(CF6)
= $26,764.51 + $25,249.54 + $23,820.32 + $22,472.00+ $21,200.00 + 20,000.00
= $139,506.37
You cannot achieve your financial goal of $150,000 in 6 years if depositing $20,000 per year paying 6% annual interest
7. You plan to save every year and accumulate $150,000 in 6 years to make the down payment for your house. To achieve your financial goal, you plan to make a deposit of $20,000 per year into a bank account paying 6% annual interest. The first deposit will be made a year from today. a. Draw a timeline to visualize the problem. b. Can you achieve your financial goal? (Show your work to answer this question) c. If not, what is the minimum deposit you need to make per year in order to achive your goal? 7. You plan to save every year and accumulate $150,000 in 6 years to make the down payment for your house. To achieve your financial goal, you plan to make a deposit of $20,000 per year into a bank account paying 6% annual interest. The first deposit will be made a year from today. a. Draw a timeline to visualize the problem. b. Can you achieve your financial goal? (Show your work to answer this question) c. If not, what is the minimum deposit you need to make per year in order to achive your goalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started