Steve Madison needs $353,100 in 10 years.How much must he invest at the end of each year, at 9% interest, to meet his needs?

Question

asked Nov 22, 2021 207k views

1 Answer

Offworldwelcome · Answer 1 · 2021-11-27T16:50:27+0000

Answer:

$23,241.07

Step-by-step explanation:

To determine the annual annuity, this formula would be used

PV = FV / annuity factor

Annuity factor = {[(1+r)^n] - 1} / r = (1.09^10 - 1 ) / 0.09 = 15.192930

$353,100 / 15.192930 = $23,241.07