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

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Definitions:

Adhesion

The force that holds molecules of different substances together, important in various biological and physical processes.

Cohesion

The action or property of like molecules sticking together, being mutually attractive.

Cohesion

The action or property of molecules of the same substance sticking together, playing a critical role in the movement of water in plants.

Adhesion

Adhesion refers to the process or condition in which different substances or surfaces stick together, often involving proteins that bind cells to each other or to extracellular matrices.