Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How much money must you deposit into a savings account at the end of each year at 4% interest compounded annually in order to earn

How much money must you deposit into a savings account at the end of each year at 4% interest compounded annually in order to earn $9,778.08 interest during a 20-year period?

I got Future value = 8209.13 + 9778.08 = $17987.21

But the formula to insert is {[(1 + i)^n - 1]/i}.

I keep missing the mark but not sure what I am doing wrong

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Shenanigans How To Detect Accounting Gimmicks And Fraud In Financial Reports

Authors: Howard M. Schilit, Jeremy Perler, Yoni Engelhart

4th Edition

126011726X, 9781260117264

More Books

Students also viewed these Finance questions

Question

Explain Galens pneuma concept of the soul.

Answered: 1 week ago

Question

How does the EEOC interpret the national origin guidelines?

Answered: 1 week ago

Question

What is the purpose of the OFCCP?

Answered: 1 week ago