years old now. He wants to accumulate $800,000.when he retires at age of 65. He starts depositing into the retirement fund annually for the next 30 years. His first deposit at age 36 is $A, and the following deposits will increase by 5% every year. The market annual interest rate is guaranteed to be 7%. Find the value of his first deposit, i.e., A=? A=$37,016.56 A=$4,862.73 A=$34,120.05 A=$4,254.89 A=$15,493.39
years old now. He wants to accumulate $800,000.when he retires at age of 65. He starts depositing into the retirement fund annually for the next 30 years. His first deposit at age 36 is $A, and the following deposits will increase by 5% every year. The market annual interest rate is guaranteed to be 7%. Find the value of his first deposit, i.e., A=? A=$37,016.56 A=$4,862.73 A=$34,120.05 A=$4,254.89 A=$15,493.39
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
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Jake is 35 years old now. He wants to accumulate $800,000.when he retires at age of 65. He starts depositing into the retirement fund annually for the next 30 years. His first deposit at age 36 is $A, and the following deposits will increase by 5% every year. The market annual interest rate is guaranteed to be 7%. Find the value of his first deposit, i.e., A=?
|
A=$37,016.56 |
||
|
A=$4,862.73 |
||
|
A=$34,120.05 |
||
|
A=$4,254.89 |
||
|
A=$15,493.39 |
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