b) If you can earn 12 percent on your investments, and you would like to accumulate$120,000 for your newborn child's education at the end of 18 years, how muchmust you invest annually to reach your goal?FV. - PMT (1+1)-1)FVn = FV of annuity at the end of nth period.PMT= annuity payment deposited or received at the end of each periodi = interest rate per periodn = number of periods for which annuity will last

Annual payment refers to the amount invested on the annual basis for accumulating the saving for…

b) If you can earn 12 percent on your investments, and you would like to accumulate $120,000 for your newborn child's education at the end of 18 years, how much must you invest annually to reach your goal? MT [(1 +² -1] FV₁ = PMT FVn = FV of annuity at the end of nth period. PMT = annuity payment deposited or received at the end of each period i = interest rate per period n = number of periods for which annuity will last

b) If you can earn 12 percent on your investments, and you would like to accumulate $120,000 for your newborn child's education at the end of 18 years, how much must you invest annually to reach your goal? MT [(1 +² -1] FV₁ = PMT FVn = FV of annuity at the end of nth period. PMT = annuity payment deposited or received at the end of each period i = interest rate per period n = number of periods for which annuity will last

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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