Explore BrainMass
Share

Deposit at the end of each year for Janice Smith

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

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?

© BrainMass Inc. brainmass.com September 22, 2018, 11:44 am ad1c9bdddf - https://brainmass.com/economics/finance/deposit-at-the-end-of-each-year-for-janice-smith-125756

Solution Preview

We have to use annuity formula to solve the problem.

FVA = W x (1 + i)n - 1 where FVA is the future ...

Solution Summary

This solution is comprised of a detailed calculation to find the deposit to be made each year by Janice Smith.

$2.19