Question

you want to have $57,000 in your savings account 10 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.9 percent interest, what amount must you deposit each year

Answer 1

$2,271.50

Step-by-step explanation:

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

57,000=Annuity[(1.079)^10-1]/0.079

57,000=Annuity[(1.079)^9]/0.079

57,000=Annuity * 1.9824/0.079

57,000=Annuity * 25.093671

Annuity=57,000/25.093671

Annuity = 2271.489094

Annuity = $2,271.50 appr.