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6 September, 23:21

You want to have $25,000 in your savings account eight years from now, and you're prepared to make equal annual deposits into the account at the end of each year. required: if the account pays 4.75 percent interest, what amount must you deposit each year?

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  1. 7 September, 02:50
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    FVA=C{[ (1+r) ^t-1]/r}

    $25,000=$C[ (1.0475^8-1) / 0.0475]

    We can now solve this equation for the annuity payment.:

    C=$25,000/9.46

    C=$2,641.55
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