Barry cuda would like to save $210,000 over the next 20 years. he will assume that his account will earn 6% annually. if barry decides to make annual end of year deposits, how much would he need to deposit annually?

To get the annual deposit we will use the formula

Amortization = [f (r (1+r) n] / (1+r) ^n-1) /

where

F = future amount = $210000

r = interest rate = 6%/annum

n = number of payments = 20

substitute the values we will solvefor Amortization

Amortization = $18308.76

Barry Cuda would need to pay $18308.76 annually to get $210,000 in the 20th year.