Use this information to answer the following question.
-If an accumulation of $16,000 is desired at the end of three years,what amount must be deposited at the end of each of the three years,assuming an APR of 12 percent?
A)$4,742.15
B)$53,984.00
C)$11,387.90
D)$22,480.00

Question

Use this information to answer the following question.  
-If an accumulation of $16,000 is desired at the end of three years,what amount must be deposited at the end of each of the three years,assuming an APR of 12 percent?
A)$4,742.15 
B)$53,984.00 
C)$11,387.90 
D)$22,480.00

Quizplus · Accepted Answer

To find the amount that must be deposited at the end of each of the three years, we can use the following formula:

PMT = FV / ((1+r)^n - 1) * (1+r)

Where:

PMT = Payment (amount to be deposited each year) 
FV = Future Value ($16,000 in this case) 
r = Annual Percentage Rate (12% in this case) 
n = Number of Years (3 in this case)

Plugging in the values, we get:

PMT = 16000 / ((1+0.12)^3 - 1) * (1+0.12) 
PMT = $4,742.15

Therefore, choice A is the best answer.

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