Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10.5 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in five years, will have a cash value of $150,000. To make up the difference, Mr. Lau has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6 percent compounded monthly? Functions: Ordinary Annuities: Sinking Funds and Ordinary annuities: Amortization Note: Cannot use Excel/Spreadsheet
Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10.5 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in five years, will have a cash value of $150,000. To make up the difference, Mr. Lau has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6 percent compounded monthly? Functions: Ordinary Annuities: Sinking Funds and Ordinary annuities: Amortization Note: Cannot use Excel/Spreadsheet
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income of $3000 every month starting 10.5 years from now and continuing for the next 20 years. He has started his account with an initial deposit of $10,000 and he knows his life insurance, maturing in five years, will have a cash value of $150,000. To make up the difference, Mr. Lau has decided to make monthly deposits in the account. How much should each deposit be if all interest is computed at 6 percent compounded monthly?
Functions: Ordinary
Note: Cannot use Excel/Spreadsheet
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