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You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the first payment being made a year from today - into a bank account that pays 7% annual interest. Your last deposit will be less than $1,450 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number. ________year(s) How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $________

You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the first payment being made a year from today - into a bank account that pays 7% annual interest. Your last deposit will be less than $1,450 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number. ________year(s) How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $________

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the first payment being made a year from today - into a bank account that pays 7% annual interest. Your last deposit will be less than $1,450 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Do not round intermediate calculations. Round your answer up to the nearest whole number.

________year(s)

How large will the last deposit be? Do not round intermediate calculations. Round your answer to the nearest cent.

$________  

 

Expert Solution
Step 1

Given:

Interest rate = 7% = 0.07

Future value (FV) = $10000

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