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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12 May, 15:00

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Elise Mcdaniel · Answer 1

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