Blackwell,Inc.has a $75,000 liability it must pay three years from today.The company is opening a savings account so that the entire amount will be available when this debt needs to be paid.The plan is to make an initial deposit today and then deposit an additional $15,000 each year for the next three years,starting one year from today.The account pays a 4.5 percent rate of return.How much does the firm need to deposit today?
A) $18,299.95
B) $20,072.91
C) $21,400.33
D) $24,487.78
E) $31,076.56
Correct Answer:
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