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FUTURE VALUE OF ANNUITY

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
B. $8,420
C. $9,340
D. MORE THAN $10,000

Solution Preview

First we will find the Value of the fund at 5 th year= ...

Solution Summary

This gives the steps to calculate the FUTURE VALUE OF ANNUITY

$2.19