Trusted by Students Everywhere

Facebook

Why Choose Us?

0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Dr

Accounting Apr 19, 2021

Dr. J. wants to buy a Dell computer which will cost S2,788 four years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. I le can earn 7% annual return. How much should he set aside? a. $531.81 b. $697.00 $627.93 d SR71 15

Expert Solution

Answer

Explanation

Computation of Equal Annual Payment using PMT Function in Excel:

=pmt(rate,nper,-pv,fv)

Here,

PMT = Equal Annual Payment = ?

Rate = 7%

Nper = 4 Years

PV = 0

FV = $2,788

Substituting the values in formula:

=pmt(7%,4,0,-2788)

PMT or Equal Annual Payment = $627.94 or $627.93

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote