Question
In: Finance
Today, you open a new savings account and plan to begin depositing equal amounts at the...
Today, you open a new savings account and plan to begin depositing equal amounts at the beginning of each year for 10 years, including the deposit you make today. There will only be these 10 deposits and no withdrawals. Assume the interest rate you will earn is 3%. If you want your account balance to be exactly $15,000 at the end of 10 years, what must be the amount of each deposit?
Solutions
Expert Solution
Calculating Annual Deposit required,
Using TVM Calculation,
PMT = BEG[FV = 15,000, PV = 0, N = 10, I = 0.03]
PMT = $1,270.35
Annual Deposit = $1,270.35
jeff jeffy answered 2 years agoRelated Solutions
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show workings in excel file
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