Me Value of Money: Practice Save and
Question 3 of 5
Select the correct calculation and payment.
Eric wants to save $75,000 for his child's college education in 12 years. Find the periodic deposit (payment) of an annuity earning 8%
interest, compounded annually, needed to achieve a future balance of $75,000.
75,000. 12
75,000 .012
PH
P=
+
12.3
- 1
P = 312
P = 170
75,000 .0.12
P=
75,000.00
(1 + oce)
1
P=
(1 + 912)
P= 6,098
1.12
-1
P = 3,952
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