1. Your goal is to have $10,000 in your bank account by the end of eight years. If the interest rate remains constant at 10% and you want to make annual identical deposits, what amount will you have to deposit into your account at the end of each year to reach your goal?$787.00$961.88$874.44$612.112. If your deposits were made at the beginning of each year rather than an at the end, what is the amount your deposit would change by if you still wanted to reach your financial goal by the end of eight years?$75.52$99.38$67.58$79.50

1). Annual deposit amount is calculated using following equation Annual deposit = (FV×r)(1+r)n-1…

Answered: 1. Your goal is to have $10,000 in your…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

See similar textbooks

Related questions

Question

1. Your goal is to have $10,000 in your bank account by the end of eight years. If the interest rate remains constant at 10% and you want to make annual identical deposits, what amount will you have to deposit into your account at the end of each year to reach your goal?

$787.00
$961.88
$874.44
$612.11

2. If your deposits were made at the beginning of each year rather than an at the end, what is the amount your deposit would change by if you still wanted to reach your financial goal by the end of eight years?

$75.52
$99.38
$67.58
$79.50

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions