Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $15,000 at the end of 7 years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 9 percent compounded annually, how much must you deposit each year to reach your goal? To reach your goal, your annual deposit must be $nothing. (Round to the nearest cent.)
Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $15,000 at the end of 7 years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 9 percent compounded annually, how much must you deposit each year to reach your goal? To reach your goal, your annual deposit must be $nothing. (Round to the nearest cent.)
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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(Solving
for PMT of an
$15,000
at the end of
7
years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay
9
percent compounded annually, how much must you deposit each year to reach your goal?To reach your goal, your annual deposit must be
$nothing.
(Round to the nearest cent.)Expert Solution
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