Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sarah wants to have $136,795 in 8 years. She plans to make regular savings contributions of $8,291 per year for 4 years, with the first

image text in transcribed

Sarah wants to have $136,795 in 8 years. She plans to make regular savings contributions of $8,291 per year for 4 years, with the first of these regular savings contributions made in 1 year from today. She also expects to make a special savings contribution of $X in 5 years. she expects to earn 16.61% per year. How much does Sarah have to contribute in the special payment to meet her goal (What is X)? Answer Format: ENTER YOUR ANSWER AS A POSITIVE NUMBER INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$""," or any other formatting. Carry computation to at least 4 decimals and round your final answer to 2 decimal places. ######.##

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

Risk Management And Financial Institutions

Authors: John C Hull

6th Edition

1119932483, 9781119932482

More Books

Students also viewed these Finance questions

Question

Connect with your audience

Answered: 1 week ago