you need $66132 at the end of twenty years. yo know that the best you can do is to make equal payments into a bank account on which you can earn 5% of interest annually. what amount must you plan to pay annually to achieve your objective?
you need $66132 at the end of twenty years. yo know that the best you can do is to make equal payments into a bank account on which you can earn 5% of interest annually. what amount must you plan to pay annually to achieve your objective?
FV = P x {[1 + R]^N - 1 / R}
66,132 = P x {[1 + 5%]^20 - 1 / 5%}
66,132 = P x {1.05^20 - 1 / 0.05}
66,132 = P x 33.0659541.......
P = 66,132 / 33.0659541......
p = $2000.00 - annual payment required to save $66,132 in 20 years @ 5% annual rate.
