Question
Your company must make payments of $100,000 each year for 10 years, with the rstpayment to be made 10 years from today. To prepare for
Your company must make payments of $100,000 each year for 10 years, with the rstpayment to be made 10 years from today. To prepare for these payments, your company mustmake 10 equal annual deposits into an account which pays a simple interest rate of 7 percent,daily compounding (360day year). Funds will remain in the account during both theaccumulaon period (the rst 10 years) and the distribuon period (the last 10 years), and thesame interest rate will be earned throughout the enre 20 years. The rst deposit will be madeimmediately. How large must each deposit be?
a.$47,821.11
b.$49,661.86
c.$51,234.67
d.$52,497.33
e.$53,262.39
Please show calculator solution.
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