How much will they have to deposit at the end of each year?

a.) If Sparco, Inc. deposits $150 at the end of each year for the next eight years in an account that pays 5% interest, how much money will Sparco have at the end of eight years?
b.) Suppose Sparco decides that they need to have $5,300 at the end of the eight years.

Answer:
a. n=8, i=5, PV=0, PMT=-150, FV= 1432.37
b. n=8, i=5, PV=0, FV=5300, PMT=-555.03

Business

You might also like to view...

In University of California v. Bakke, ________

a) reverse discrimination existed b) affirmative action plan amounted to a quota c) both d) neither

Business

Critics have noted that a "dark side" to job engagement might be that an individual becomes overly competitive

Indicate whether the statement is true or false

Business