Calculating the Future Value of an Investment
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Jane's goal is to have an investment grow to $100000 in 20 years. Her strategy is to make lump-sum contributions in years 0, 5, 10, and 15. That is, in Year 0, she will contribute $X, in year 5 she will contribute $x, etc. where $X is the same at each contribution. Earning an effective annual rate of interest of 10%, what does she need to contribute at each payment to meet her goal?
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The $x deposited in year 0 would grow into:
= 1.61051x
At year 5, another x would be deposited, so now ...
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