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You want to buy a car for cash 5 years from now. The car price at...

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Finance

You want to buy a car for cash 5 years from now. Thecar price at that time will be 20000 dollars. To this end you wantto make an annuity deposit each year so that you accumulate therequired amount. Interest rate is 6%.  How much do you have todeposit each year if (i) deposits are made at the end of each year(ii) deposits are made at the beginning of each year.

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Transcribed Image Text

You want to buy a car for cash 5 years from now. Thecar price at that time will be 20000 dollars. To this end you wantto make an annuity deposit each year so that you accumulate therequired amount. Interest rate is 6%.  How much do you have todeposit each year if (i) deposits are made at the end of each year(ii) deposits are made at the beginning of each year.

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