What amount must be invested each year

Reference no: EM132209885

Question - A saver wants $100,000 after ten years and believes that it is possible to earn an annual rate of 8 percent on invested funds.

a) What amount must be invested each year to accumulate $100,000 if

(1) The payments are made at the beginning of each year or

(2) If they are made at the end of each year?

b) How much must be invested annually if the expected yield is only 5 percent?

Reference no: EM132209885

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