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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?

 Jul 20, 2017
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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.

 Jul 20, 2017

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