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Future Value

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You need to accumulate $10,000. To do so you plan to make deposits of $1250 per year, with the first payment being made a year from today in a bank account that pays 12 percent interest. Your last deposit will be less than $1250 if less is need to round out to $10,000. How many years will it take you to reach your $10,000 goal, and what will be the last deposit?

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Solution Preview

You need to accumulate $10,000.  To do so you plan to make deposits of $1250 per year, with the first payment being made a year from today in a bank account that pays 12 percent interest.  Your last deposit will be less than $1250 if less is ...

Solution Summary

The solution calculates the number of years required to achieve a future value, given the value of annual deposits (annuity).

$2.19