Katya wants to make 100 deposits to a bank account. She wants the total present value of the payments to be exactly $200,000. The first 99 deposits of $3,800 will be made monthly, starting one month from today. How much will the 100th deposit be if it is made 100 months from today, assuming that Katya’s effective annual interest rate is 20%
Katya wants to make 100 deposits to a bank account. She wants the total present value of the payments to be exactly $200,000. The first 99 deposits of $3,800 will be made monthly, starting one month from today. How much will the 100th deposit be if it is made 100 months from today, assuming that Katya’s effective annual interest rate is 20%
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 12E
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Katya wants to make 100 deposits to a bank account. She wants the total present value of the payments to be exactly $200,000. The first 99 deposits of $3,800 will be made monthly, starting one month from today. How much will the 100th deposit be if it is made 100 months from today, assuming that Katya’s effective annual interest rate is 20%?
Please do not solve entire problem in excel.
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