André is looking ahead to his retirement. He wants to have $580,000 in his savings account when he retires. How much must he deposit into his account now (a one-time deposit), if the account pays a fixed interest rate of 9%, to ensure that the account has $580,000 when he retires, 25 years from now? Assume that André will not make any additional deposits or withdrawals into or out of the account between now and when he reaches retirement. O A. $94,165 O B. $77,846 O C. $121,070 O D. $67,261

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
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André is looking ahead to his retirement. He wants to have $580,000 in his savings account when he retires. How much must he deposit into his account now (a one-time deposit), if the account pays a fixed interest rate of 9%, to ensure that the
account has $580,000 when he retires, 25 years from now?
This question: 10 point(s) possible
Assume that André will not make any additional deposits or withdrawals into or out of the account between now and when he reaches retirement.
O A. $94,165
O B. $77,846
O C. $121,070
O D. $67,261
O Time Remaining: 00:34:10
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Transcribed Image Text:André is looking ahead to his retirement. He wants to have $580,000 in his savings account when he retires. How much must he deposit into his account now (a one-time deposit), if the account pays a fixed interest rate of 9%, to ensure that the account has $580,000 when he retires, 25 years from now? This question: 10 point(s) possible Assume that André will not make any additional deposits or withdrawals into or out of the account between now and when he reaches retirement. O A. $94,165 O B. $77,846 O C. $121,070 O D. $67,261 O Time Remaining: 00:34:10 Next MacBook Air DD F10 F8 F6 F5 esc F2 F3 F1 & delete % %3D @ # $ 8 1 2 3 4 } { T Y U W E R Q K L G H .. ·- 品:
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