If a company wants to have $100,000 in a contingency fund 10 years from now, the amount the company must deposit each year in years 1 through 5, at an interest rate of 10% per year, is closest to?
A. Less than $8,000
D. MORE THAN $10,000
First we will find the Value of the fund at 5 th year= ...
This gives the steps to calculate the FUTURE VALUE OF ANNUITY