Janice Smith wishes to accumulate $8,000 by the end of 5 years by making equal annual end-of-year deposits over the next five years. If Janice can earn 7 percent on her investments, how much must she deposit at the end of each year to meet this goal?
We have to use annuity formula to solve the problem.
FVA = W x (1 + i)n - 1 where FVA is the future ...
This solution is comprised of a detailed calculation to find the deposit to be made each year by Janice Smith.