.......... You want to receive $725 at the end of each year for 4 years. Interest is 7.9% compounded annually.(a) How much would you have to deposit at the beginning of the 4-year period?(b) How much of what you receive will be interest?(a) The deposit is S(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)(b) The interest is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The given problem can be solved using PV function in excel. PV function computes present worth or…

You want to receive $725 at the end of each year for 4 years. Interest is 7.9% compounded annually. (a) How much would you have to deposit at the beginning of the 4-year period? (b) How much of what you receive will be interest? (a) The deposit is SO: (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

You want to receive $725 at the end of each year for 4 years. Interest is 7.9% compounded annually. (a) How much would you have to deposit at the beginning of the 4-year period? (b) How much of what you receive will be interest? (a) The deposit is SO: (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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