The account pays a 5 percent rate of return how much does, Financial Management

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The account pays a 5 percent rate of return how much does

Stevenson Interiors of Kingston has a $67,500 liability they must pay four 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 $10,000 a year for the next four years, starting one year from today. The account pays a 5 percent rate of return. How much does the firm need to deposit today?

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Financial Management: The account pays a 5 percent rate of return how much does

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