If you need $40,000 five years from now, what is the minimum amount of money you need to deposit into a bank account that pays 4% annual interest, compounded (give your answers to the nearest cent): (a) annually? $ (b) monthly? $ (c) daily (assuming 365 days in a year)? $

If you need $40,000 five years from now, what is the minimum amount of money you need to deposit into a bank account that pays 4% annual interest, compounded (give your answers to the nearest cent): (a) annually? $ (b) monthly? $ (c) daily (assuming 365 days in a year)? $

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Q) If you need $40,000 five years from now, what is the minimum amount of money you need to deposit into a bank account that pays 4% annual interest, compounded (give your answers to the nearest cent):

(a) annually? $

(b) monthly? $

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