You want to have $51,000 in your savings account 7 years from now, and you're prepared...

You want to have $51,000 in your savings account 7 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.7 percent interest, what amount must you deposit each year? Multiple Choice $5,947.47 $3,416.98 $9,374.98 $3,417.01

Expert Solution

FV = $51,000
Rate = 6.7%
Nper = 7
PV = 0

Annual deposit can be calculated by using the following excel formula:
=PMT(rate,nper,pmv,fv)
=PMT(6.7%,7,0,-51000)
= $5,947.47

Annual deposit = $5,947.47

jeff jeffy answered 2 years ago

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