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You want to have $77,000 in your savings account 11 years from now, and you’re prepared...

You want to have $77,000 in your savings account 11 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 6.30 percent interest, what amount must you deposit each year? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Annual deposit $

  

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Homework Answers

Answer #1

n=11
FV=77,000
rate =0.063

Using excel formula for payment:
=PMT(0.063,11,0,77000)
=$5,062.41

Using FV of annuity formula:

77000=P[(1.063)^11-1]/0.063
P=77000/15.21
=$5062.41

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