mergest x CSecure https//www.mat Apps-sen U southern New Harn. D New Tao a unted
ID: 2614485 • Letter: M
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mergest x CSecure https//www.mat Apps-sen U southern New Harn. D New Tao a unted Statri Posts ,, When to Sel A Mut d:4814492218questionld 38flushed f 74aback DoA FIN-320-Q5132 Principles of Finance 18EWS Wendy Franey&1 613/18 3:28 PM Homework: 6-1 MyFinanceLab Assignment Save Score: 0 of 4 pts IO of 12(9complete Hw Score: 42%, 21 of 50 pts P6-34 (similar to) pelated to Checkpoint 6.1) (Annulty payments) Lisa Sinpson wares to have S1.600 000 in SS years by making equal .mi·entde+yer deposits i e a trsdelened accoun' paying 11 75 What must Lisa's aneual doposit be? an The amount of Lisa's annual depost must be Round to the nearest cem) or and the cc NPMExplanation / Answer
Required Value of Deposit after 55 years = $ 1600000, Time Period = 55 years, Annual Interest = 11.75 % and let the annual deposits be $ K coming in at the end of every year beginning from the end of year 1.
Therefore, 1600000 = K x (1.1175)^(54) + K x (1.1175)^(53) + K x (1.1175)^(52) + .......+ K
K x [{(1.1175)^(55) - 1} / {1.1175-}] = 1600000
K = $ 418.32
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