Question

A businesswoman wants to invest a certain sum of money at the end of each year for 6 years. The investment will earn 9 % compounded annually. At the end of 6 years, she will need a total of dollar-sign 20 ,000 accumulated. How should she compute the required annual investment? (a) dollar-sign 20 ,000 times the amount of an annuity of dollar-sign Baseline 1 at 9 % at the end of each year for 6 years

(b) dollar-sign 20 ,000 divided by the amount of an annuity of dollar-sign Baseline 1 at 9 % at the end of each year for 6 years

(c) dollar-sign 20 ,000 times the present value of an annuity of dollar-sign Baseline 1 at 9 % at the end of each year for 6 years

(d) dollar-sign 20 ,000 divided by the present value of an annuity of dollar-sign Baseline 1 at 9 % at the end of each year for 6 years

Answer 1