You are expecting to retire in 28-years and you want to retire with $10,000,000. How much you must put in the account monthly with interest rate of 8% annual and the current balance in account is $122,000. a. $7,744.91 b. $7,098.15 c. $29,761.90 d. $29,398,81

You are expecting to retire in 28-years and you want to retire with $10,000,000. How much you must put in the account monthly with interest rate of 8% annual and the current balance in account is $122,000. a. $7,744.91 b. $7,098.15 c. $29,761.90 d. $29,398,81

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

You are expecting to retire in 28-years and you want to retire with $10,000,000. How much
you must put in the account monthly with interest rate of 8% annual and the current balance
in account is $122,000.
a. $7,744.91
b. $7,098.15
c. $29,761.90
d. $ 29.398.81

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