Assuming an interest rate of 10%, how much (rounded to nearest dollar) will need to be deposited in a savings account at the end of each year for 8 years to accumulate $40,000 in savings? $2,946 $3,498 $4,216 $5,000

Assuming an interest rate of 10%, how much (rounded to nearest dollar) will need to be deposited in a savings account at the end of each year for 8 years to accumulate $40,000 in savings? $2,946 $3,498 $4,216 $5,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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Question

Assuming an interest rate of 10%, how much (rounded to nearest dollar) will need to be deposited in a savings account at the end of each year for 8 years to accumulate $40,000 in savings?

$2,946
$3,498
$4,216
$5,000

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