Your Company Must Make Payments of $100,000 Each Year for 10

question 93

Multiple Choice

Your company must make payments of $100,000 each year for 10 years,with the first payment to be made 10 years from today.To prepare for these payments,your company must make 10 equal annual deposits into an account which pays a simple interest rate of 7 percent,daily compounding (360-day year) .Funds will remain in the account during both the accumulation period (the first 10 years) and the distribution period (the last 10 years) ,and the same interest rate will be earned throughout the entire 20 years.The first deposit will be made immediately.How large must each deposit be?

• A) $47,821.11
• B) $49,661.86
• C) $51,234.67
• D) $52,497.33
• E) $53,262.39

---

Definitions:

Nicotine Patches

These are transdermal patches used to deliver nicotine into the body to aid in quitting smoking by reducing withdrawal symptoms and cravings.

Preparation/Determination

The process of getting ready and decisively committing to pursue a specific goal or task.

Tobacco-Free

Describes environments, regulations, or policies that prohibit the use of tobacco products in certain areas or contexts to promote health.

Preparation/Determination

The process of getting ready for a specific task or event, coupled with the resolve to achieve a set goal.