Time Value of Money (TVM)

User Generated

oxqypr

Business Finance

Description

Provide a story problem that can be solved using one or more TVM calculations.

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Explanation & Answer

John is 35 years of age. John wants to create a fund which will be $1,000,000 at the end of 30 years. He plans  to make equal annual payments for 30 years the payment is due after one year. The rate of interest is 7%. What must be the annual payments? 


Anonymous
Very useful material for studying!

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