ou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will receive $70,000 at the end of 10 years. In addition, you plan to invest an equal amount at the end of every year over the next 22 years to reach your goal. If the annual rate of interest is 6.40% , how much do you have to invest annually? a. $41,586 b. $154,648 c. $36,722 d. $39,503 e. $43,254
ou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will receive $70,000 at the end of 10 years. In addition, you plan to invest an equal amount at the end of every year over the next 22 years to reach your goal. If the annual rate of interest is 6.40% , how much do you have to invest annually? a. $41,586 b. $154,648 c. $36,722 d. $39,503 e. $43,254
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Question
You want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will receive $70,000 at the end of 10 years. In addition, you plan to invest an equal amount at the end of every year over the next 22 years to reach your goal. If the annual rate of interest is 6.40% , how much do you have to invest annually?
a. $41,586
b. $154,648
c. $36,722
d. $39,503
e. $43,254
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