Question
You deposit $6,000 into an account that promises to pay you an annual interest rate of 5.5 percent for the next 6 years. You will
You deposit $6,000 into an account that promises to pay you an annual interest rate of 5.5 percent for the next 6 years. You will leave the money deposited in the account and 10 years from today you should have $12,800 in your account. How much annual interest do you need to earn in the last 4 years to achieve this goal?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
We can start by using the compound interest formula to find out how much the initial deposit of 6000 ...
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
