Problemyour brother needs 24256 at the end of eight years, Ask an Expert

Accounting

Problem:

Your brother needs $24,256 at the end of eight years, and his only investment outlet is a 9 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, he can make an initial investment at the beginning of the first year.

Required:

Question 1: What single payment could be made at the beginning of the first year to achieve this objective?

Question 2: What amount could he payat the end of each year annually for eight years to achieve this same objective?

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169821

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