Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into...

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Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into a tax deferred account paying 9.50 % annually. What must Lisa's annual deposit be?

Que: The amount of Lisa's annual deposit must be ?

P6-34 (similar to) (Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,000.000 in 45 years by making

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Answer 1

Answer #1

Ans $ 1627.29

P =	Periodic payments
r =	rate of interest
n =	no of years

Future Value of Annuity =	P ( (1 + r)ⁿ - 1 ) / r
1000000 =	P * ((1 + 9.50%)^45 - 1) / (9.50%)
1000000 =	614.519363833548 * P
P =	1000000 / 614.519363833548
P =	1627.29

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Answer 2

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Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into...

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You plan to accumulate $271,000 over a period of 18 years by making equal annual deposits...

Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into...

Homework Answers

Add Answer to: Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into...

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Lisa Simpson want to have $1,000,000 in 45 years by making equal annual end-of-the-year deposits into...