Question
You want to treat your parents of an all-inclusive, European vacation when they retire at the end of 2034. You project that the trip will
You want to treat your parents of an all-inclusive, European vacation when they retire at the end of 2034. You project that the trip will cost $20,000 on January 1, 2035. Assume you want to make deposits to a money market account on January 1 every year beginning in 2021and ending in 2035(first deposit made 1/1/2021; last deposit made 1/1/2035). The savings account pays an annual, discrete compound interest rate of 6 percent.Draw the time line withJanuary 1, 2021 representing Year 0and determine the uniform annual payment that will enable you to pay for your parents trip.
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