To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42 years. You plan to make equal annual end of year deposits into an account paying 8% annual interest. a. How large must the annual deposit be to create the R 220,000 fund in 42 years? b. If you can afford to deposit only R600 per year into the account, how much will you have accumulated by the end of the forty-second year?
To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42 years. You plan to make equal annual end of year deposits into an account paying 8% annual interest. a. How large must the annual deposit be to create the R 220,000 fund in 42 years? b. If you can afford to deposit only R600 per year into the account, how much will you have accumulated by the end of the forty-second year?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42 years. You plan to make equal annual end of year deposits into an account paying 8% annual interest.
a. How large must the annual deposit be to create the R 220,000 fund in 42 years?
b. If you can afford to deposit only R600 per year into the account, how much will you have accumulated by the end of the forty-second year?
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