Respuesta :
Answer:
c) $56,984
Explanation:
First, kindly find attached the completion of the question including the multiple choices below
Round your answer to the nearest dollar.
Select the appropriate factor for your calculation:
Future Value of $1: 3.10585
Future Value of an Annuity of an Ordinary Annuity: 17.54874
a) 45,586 b) $33,334 c) $56,984 d)$26,432
Solution
First, we pull out important information as follows
The future value of the accumulation is $1,000,000, therefore, the future value of the ordinary annuity (17.54874) will be used.
Secondly,we now need to calculate the amount to be invested now, to bring an accumulation of $1,000,000, which we call x
The future value= x ( Future Value of an Annuity of an Ordinary Annuity)
= 1,000,000 = x (17.54874)
= $1,000,000 = 17.54874x
x= $1,000,000 / 17.54874
The amount to invest = $56,984
The amount that M. Fields should deposit each year for 10 years, beginning at the end of the first year is $56,984.16.
How much should be deposited each year?
The formula that can be used to determine the yearly deposits is:
Future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- n = number of years
- r = interest rate
{[1.12^10] - 1} / 0.12 = 17.548735
Yearly deposits = $1,000,000 / 17.548735 = $56,984.16
To learn more about how to determine yearly deposits, please check: https://brainly.com/question/24108530
