The Kellys are planning for a retirement home. They estimate they will need $200,000 4 years from now to purchase this home. Assuming an interest rate of 10%, what amount must be deposited at the end of each of the 4 years to fund the home price? (Round to two decimal places.)© BrainMass Inc. brainmass.com June 4, 2020, 12:28 am ad1c9bdddf
The computation of the future value of an ordinary annuity is:
FVOA is the future value of an ...
Using the appropriate formula, this solution illustrates how to determine the amount of periodic payments needed to be made to purchase a house in the future.