You need to pay off a car loan within the next two years. The payment will be $4,000 everymonth. Today you have made a single deposit into a return-guaranteed investment accountthat will allow you to cope with all the monthly payments. This account earns an effectiveannual interest rate of 12.68250301%.What is the amount of the single deposit made today?

You need to pay off a car loan within the next two years. The payment will be $4,000 everymonth. Today you have made a single deposit into a return-guaranteed investment accountthat will allow you to cope with all the monthly payments. This account earns an effectiveannual interest rate of 12.68250301%.What is the amount of the single deposit made today?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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