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inysia [295]
3 years ago
7

The Kellys are planning for a retirement home. They estimate they will need $200,000 4 years from now to purchase this home. Ass

uming an interest rate of 10%, what amount must be deposited at the end of each of the 4 years to fund the home price?
Business
1 answer:
vitfil [10]3 years ago
3 0

Answer:

Annual deposit= $43,094.16

Explanation:

Giving the following information:

The Kellys are planning for a retirement home. They estimate they will need $200,000 4 years from now to purchase this home. Assuming an interest rate of 10%, what amount must be deposited at the end of each of the 4 years to fund the home price?

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (200,000*0.10)/ [(1.10^4)-1]= $43,094.16

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Explanation:

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3 years ago
A large increase in the supply of hd-tv sets occurs simultaneously with a smaller decrease in its demand. as a result the equili
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3 years ago
Archie Co. purchased a framing machine for $60,000 on January 1, 2021. The machine is expected to have a four-year life, with a
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Answer:

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