Question

Blanca plans to make equal annual payments into a savings account at the end of each...

Blanca plans to make equal annual payments into a savings account at the end of each year for 5 years. She would like to have $28,185 at the end of 5 years in order to invest in a new fishing boat. If the savings account earns 6%, what annual payment will be required for Alexis to reach her goal (round to nearest dollar)?

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Homework Answers

Answer #1

Answer: $5,000

Explanation:

Formula used:

=> P = $28,185/5.6371

=> P = $5,000

Workings:

Where,

P = Periodic payments

r = rate of interest

n = number of payments

F = Future value of annuity

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