What is the answer for C?Comprehensive problem) You would like to have $72,000 in 12...

80.2K

Verified Solution

Question

Finance

What is the answer for C?Comprehensive problem) You would like to have $72,000 in 12 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will ear 10 percent interest compounded annually. Your first payment will be made at the end of the year.a. How much must you deposit annually to accumulate this amount?b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be?(Assume you can earn 10 percent on this deposit.)c. At the end of year 5, you will receive $15,000 and deposit it in the bank in an effort to reach your goal of $72,000 at the end of year 12. In addition to the lump-sum deposit, how much must you invest in 12 equal annual deposits to reach your goal? (Again, assume you can ear 10 percent on this deposit.)a. How much must you deposit annually to accumulate this amount? 3366.96b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should the lump-sum deposit be?$ 22941.42(Round to the nearest cent.)c. If you deposit $15,000 received at the end of year 5 in the bank, how much will it grow to in the account at the end of year 12?

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