SOLUTION: Find the lump sum deposited today that will yield the same total amount as this yearly payment (made at the end of each year for 20 years at the given interest rate, compounded ann

SOLUTION: Find the lump sum deposited today that will yield the same total amount as this yearly payment (made at the end of each year for 20 years at the given interest rate, compounded ann

Algebra.Com

Question 309370: Find the lump sum deposited today that will yield the same total amount as this yearly payment (made at the end of each year for 20 years at the given interest rate, compounded annually).
$10,700 at 8%
Answer by nyc_function(2741) (Show Source): You can put this solution on YOUR website!
A = P � (1 + r)^n is the formula you need.
You are solving for A.
A = 10,700 * (1 + 0.08)^20
Can you do it now?

RELATED QUESTIONS
Can someone please help me with this problem: Find the lump sum deposited today that... (answered by Theo)

Find the lump sum deposited today that will yield the same total amount as payments of... (answered by rfer)

#15: What lump sum deposited today at 12% compounded quarterly for 15 years will yield... (answered by mathmate,MathTherapy)

the equipment will cost $26000 what lump sum should be invested today at 8% compounded... (answered by Alan3354,stanbon)

Carolyn Ellis is setting up an annuity for her retirement. She can set aside $2000 at... (answered by rfer)

Must pay a lump sum of $6000 in 5 years. What amount should be deposited today at 6.2%... (answered by checkley77)

a) Carter expects to live for 30 years more after his retirement. He would like to... (answered by ikleyn)

Question 2 (20 marks) a) Carter expects to live for 30 years more after his retirement.... (answered by asinus)

Southwest Dry Cleaners believes that it will need new equipment in 9 years. The equipment (answered by josmiceli)