Cari, Inc. wishes to accumulate $1,000,000 to be used to pay off a loan at the end of 2 years. How much will Cari, Inc. deposit each month for two years, beginning at the end of the first month, to accumulate the desired amount if the investment earns an annual rate of 12%? (Select the closest amount)
A) $ 37,658
B) $ 47,358
C) $ 37,073
D) $ 26,432

Question

Quizplus · Accepted Answer

N = 24 (2*12) I/Y = 1.0 (12%/12) PMT = ? FV =1,000,000
PMT = $37,073

Cari, Inc Wishes to Accumulate $1,000,000 to Be Used to Pay