An Account Earns 5% Interest Per Year, Compounded Annually

question 7

Short Answer

An account earns 5% interest per year, compounded annually. Suppose payments of $6000 each are to be made once a year from the account for 10 years, starting now. How much must be deposited now to cover these payments? Round to the nearest dollar.

---

Definitions:

Crises

Severe situations that disrupt the normal functioning of individuals, organizations, or societies, requiring urgent and effective responses.

Unfreezing

A term used in change management that refers to the process of making individuals or organizations ready for change by overcoming inertia and dismantling existing mindsets.

Motivation To Change

The drive or willingness of individuals or groups to alter their behavior, attitudes, or beliefs in response to external or internal pressures.

Opportunity To Change

The possibility or potential for modification, transformation or transitioning from one state or condition to another.