Use the following 8% interest factors for questions .
-Korman Company wishes to accumulate $500,000 by May 1, 2022 by making 8 equal annual deposits beginning May 1, 2014 to a fund paying 8% interest compounded annually.What is the required amount of each deposit?
A)$87,008
B)$47,007
C)$43,525
D)$50,390

Question

Use the following 8% interest factors for questions . 
-Korman Company wishes to accumulate $500,000 by May 1, 2022 by making 8 equal annual deposits beginning May 1, 2014 to a fund paying 8% interest compounded annually.What is the required amount of each deposit?
A)$87,008 
B)$47,007 
C)$43,525 
D)$50,390

Quizplus · Accepted Answer

To find the required amount of each deposit, we use the future value of an annuity formula: FV = Pmt * [(1 + r)^n - 1] / r. Here, FV = $500,000, r = 0.08, and n = 8. Solving for Pmt gives approximately $43,525.

Use the Following 8% Interest Factors for Questions