Problem 9-30 Payments required [LO4]

You need $25,056 at the end of six years, and your only investment outlet is a 12 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix C.

(a)	What single payment could be made at the beginning of the first year to achieve this objective? (Round "PV Factor" to 3 decimal places and final answer to 2 decimal places. Omit the "$" sign in your response.)

Single payment made

$

(b)	What amount could you pay at the end of each year annually for six years to achieve this same objective? (Round "FV Factor" to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Amount to be paid

$