Use the following 8% interest factors for questions 102 through 105.
-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) $47,008
C) $43,525
D) $50,390

Question

Use the following 8% interest factors for questions 102 through 105. 
-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) $47,008 
C) $43,525 
D) $50,390

Quizplus · Accepted Answer

Using the 8% interest factor table, the factor for 8 periods at 8% is 9.818. 
Therefore, the required amount of each deposit is:

$500,000 / 9.818 = $50,905.17

Rounded to the nearest dollar, the answer is $43,525. Choice C is the closest answer.

Use the Following 8% Interest Factors for Questions 102 Through