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ezto.mheducation.com canvas mizzou- Yahoo Search Results Yahoo Search Results 2017FS ACCTCY 2038 Prestigiacomo- Acc 2. 3.33 points value On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provide $93,000 to send his son to college (Five years from now). The in account will earn 8 percent, which will be added to the fund each year-end. (Future Value of S1. Value of $1, from the tables provided.) Present Euture Value Annuity of S1. Present Value Annuity of 51) (Use appropriate factorfs) Required 1. How much must Alan deposit on January 17 (Round your final answer to the nearest whole amount.) Table or Calculator Function: Future Value na Present Value 2. What is the interest for the Five years? (Round your final answer to the amount.)Explanation / Answer
Given the Future value of $93,000. Let the amount to be deposited by Alan be x which is the present value of $93,000 @8% over a period of 5 years.
x = $93,000*PVIF(8%,5years) = $93000*0.6806 = $63,295.80
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