Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. john rider wants to accumulate $100,000 to be used

John Rider wants to accumulate $100,000 to be used for his daughters college education. He...

90.2K

Verified Solution

Question

Accounting

John Rider wants to accumulate $100,000 to be used for his daughters college education. He would like to have the amount available on December 31, 2026. Assume that the funds will accumulate in a certificate of deposit paying 8% interest compounded annually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Answer each of the following independent questions. Required: 1. If John were to deposit a single amount, how much would he have to invest on December 31, 2021? 2. If John were to make five equal deposits on each December 31, beginning a year later, on December 31, 2019, what is the required amount of each deposit? 3. If John were to make five equal deposits on each December 31, beginning now, on December 31, 2018, what is the required amount of each deposit? (For all requirements, Round your final answers to nearest whole dollar amount.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students