arMathAp11 63021 Ask Your Teacher My Notes How much must be

arMathAp11 6.3.021.

Ask Your Teacher

My Notes

How much must be deposited at the beginning of each year in an account that pays 4%, compounded annually, so that the account will contain $20,000 at the end of 4 years? (Round your answer to the nearest cent.)

Question Part

Points

Submissions Used

Future value of Annuity = P[(1+r)^n -1]/r where r = rate of interest and P = annual payment

20000 = P[ (1+0.04)^4 -1]/0.04

P( periodic payment each year ) = 20000/4.246 = $ 4710.315 = $ 4710.32

arMathAp11 6.3.021. Ask Your Teacher My Notes How much must be deposited at the beginning of each year in an account that pays 4%, compounded annually, so that

arMathAp11 63021 Ask Your Teacher My Notes How much must be

Solution

Get Help Now

Submit a Take Down Notice