Register
The kellys are planning for a retirement home. they estimate they will need $180,000 4 years from now to purchase this home. assuming an interest rate of 9%, what amount must be deposited at the end of
170k views
4 votes
The kellys are planning for a retirement home. they estimate they will need $180,000 4 years from now to purchase this home. assuming an interest rate of 9%, what amount must be deposited at the end of each of the 4 years to fund the home price? tvm calculator

User Piotrek Bzdyl
by
6.5k points

1 Answer

6 votes
You need to calculate the present value. Present value = future value (1+r)^-n; 180,000(1.09)^-4 = 127,516.538; 127516.538/4 = 31879.13
User Joseph Sikorski
by
6.5k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.5m questions

8.7m answers

Other Questions

One reason that businesses want to combine with other businesses is to A. avoid taxes. B. delay expenses. C. hire more workers. D. reduce expenses.
Which of the following possesses the sole power to create revenue bills?
Which of the following is an example of a fixed expense? A.) Clothing B.) Rent C.) Food D.) Entertainment
A ______ is "the basic interpretive mechanism to let people know what an organization is doing and are sent out to editors and reporters in hopes of stimulating favorable stories about their organizations"
All of the following are fees typically charged by credit card companies EXCEPT: A. Late payment fee B. Balance Transfer fee C. Annual membership fee D. Reload fee
Link Copied!