You need to accumulate $10,000. To do so, you plan to make deposits of $1,400 per year with the first payment being made year from today - into a bank account that pays 9% annual interest. Your last deposit will be less than $1,400 if less is needed to round out to $10,000. How many years will it take you to reachyour $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number.year(s)How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent.$

Annual PMT=1400Future value=10000Interest rate=r=9%

your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number. year(s) How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent.

your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number. year(s) How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

You need to accumulate $10,000. To do so, you plan to make deposits of $1,400 per year with the first payment being made year from today - into a bank account that pays 9% annual interest. Your last deposit will be less than $1,400 if less is needed to round out to $10,000. How many years will it take you to reach
your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number.
year(s)
How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent.
$

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