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Rob Herndon, an accountant with Southwest Airlines, wants to retire 50% of
Southwest Airlines bonds by 2028. Calculate the payment Rob needs to make
at the end of each year at 5% compounded annually to reach his goal of paying
off $430,000 in 10 years. (Use Table 13.3.) (Do not round intermediate
calculations.)

Respuesta :

anthougo

To achieve his goal of paying off $430,000 in 10 years, Rob Herndon needs to make $34,186.97 at 5% compounded annually.

What is a future value?

A future value refers to a value on a future date based on an assumed growth rate of interest over time.

The future value can be determined using the FV formula or table.

We can also compute the future value using an online finance calculator as follows:

Data and Calculations:

N (# of periods) = 10 years

I/Y (Interest per year) = 5%

PV (Present Value) = $0

FV (Future Value) = $430,000

Results:

PMT = $34,186.97

Sum of all periodic payments = $341,869.70

Total Interest= $88,130.30

Thus, for Rob Herndon to achieve his goal of paying off $430,000 in 10 years, he needs to make $34,186.97 at 5% compounded annually.

Learn more about Calculating Future Values at https://brainly.com/question/24703884

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