Answered: How much would you need to deposit in…

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Finance

How much would you need to deposit in the account each month?

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 7CE

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Question

Choose the appropriate formula type for answering the following question:

Suppose you want to have $410,500 for retirement in 15 years. Your account earns 6.5% interest. How much would you need to deposit in the account each month?

Annuity

Compound Interest

Loan/Payout Annuity

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