You need $24,856 at the end of 9 years
Question
You need $24,856 at the end of 9 years, and your only investment outlet is an 10 percent long-term certificate of
deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
| a. | What single payment could be made at the beginning of the first year to achieve this objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Single payment made | $ |
| b. | What amount could you pay at the end of each year annually for 9 years to achieve this same objective?(Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
Amount to be paid
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