How much must be deposited today into the following account in order to have $75,000 in 8 years for a down payment on a house? Assume no additional deposits are made. An account with annual compounding and an APR of 4%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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How much must be deposited today into the following account in order to have $75,000 in 8 years for a down
payment on a house? Assume no additional deposits are made.
An account with annual compounding and an APR of 4%
should be deposited today.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Transcribed Image Text:How much must be deposited today into the following account in order to have $75,000 in 8 years for a down payment on a house? Assume no additional deposits are made. An account with annual compounding and an APR of 4% should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)
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