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Future Value of an Annuity

A manufacturing company wants to have $100,000 available in 5 years to replace a production line. The amount of money that would have to be deposited each year at an interest rate of 10% per year would be closest to?

a. 12,380
b. 13,380
c. 16,380
d. 26,380

Solution Summary

This give step by step explanation of calculation of Annuity,