Question

# You know you will need \$25,000 at the end of 5 years. How much would you...

You know you will need \$25,000 at the end of 5 years. How much would you have to deposit annually, starting at the end of the first year, into an account earning 10% to accumulate the needed amount?

\$3,980

\$4,095

\$4,435

\$4,973

\$5,886

17.

What is the amount of the equal annual installments for a 10-year, \$10,000 loan with a 20% rate of interest?

\$2,225

\$3,863

\$2,385

\$1,917

\$2,000

18.

What amount received at the end of 15 years is equivalent to \$100 received at the end of each year for 15 years if the interest rate is 12%?

\$3,728

\$4,042

\$2,676

\$547

\$625

 16) \$       4,095 Annual deposit =-pmt(rate,nper,pv,fv) = \$       4,095 Where, rate = 10% nper = 5 pv = 0 fv = \$       25,000 17) \$       2,385 Equal annual payment =-pmt(rate,nper,pv,fv) = \$       2,385 Where, rate = 20% nper = 10 pv = \$       10,000 fv = 0 18) \$       3,728 Future Value =fv(rate,nper,pmt,pv) = \$       3,728 Where, rate = 12% nper = 15 pmt = \$           -100 pv = 0

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