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.

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Definitions:

Active Listening

A communication technique that involves giving full attention to the speaker, understanding their message, and responding thoughtfully, indicating full comprehension.

Organizational Communication

Oral and written communication in an organization. It has formal and informal dimensions and travels vertically and horizontally.

Grapevine

An informal communication network within an organization, where information is often passed through word of mouth.

Communication Work

The effort or activity involved in conveying information or expressing ideas effectively, especially in professional settings.