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    Deposits Necessary to Reach a Financial Goal

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    My company wishes to accumulate 1,300,000 by Dec.31, 2017, to retire bonds outstanding. We deposit 300,000 on Dec.31, 2007 which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, I would like to know how much should be deposited at the end of each quarter for 10 yrs. to ensure that 1,300,000 is available at the end of 2017.

    (Note that the quarterly. deposits will also earn at a rate of 10% compounded quarterly.)

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    Solution Preview

    My company wishes to accumulate 1,300,000 by Dec.31, 2017, to retire bonds outstanding. We deposit 300,000 on Dec.31, 2007 which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, I would like to know how much should be deposited at the end of each quarter for 10 yrs. to ensure that 1,300,000 is available at the end of 2017.

    (Note that the quarterly. deposits will also earn at a rate of 10% compounded quarterly.)

    Note: For ...

    Solution Summary

    Calculates the value of annuity.

    $2.19

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