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Thread: Trying to set up equation for problem!!!

  1. #1

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    Trying to set up equation for problem!!!

    I need assistance setting up the equation for this problem...Thanks!!!



    A businesswoman wants to invest a certain sum of money at the end of each year for 5 years. The investmet will earn 6% compounded annually. At the end of 5 years, she will need a total of $30,000 accumulated. How should she compute the required annual investment?

    a) $30,000 times the amount of an annuity of $1 at 6% at the end of each year for 5 years
    b) $30,000 divided by the amount of an annuity of 41 at 6% at the end of each year for 5 years.
    c) $30,000 times the present value of any annuity of $1at 6% at the end of each year for 5 years.
    d) %30,000 divided by the present value of an annuity of $1 at 6% at the end of each year for 5 years.

  2. #2
    Lively Member Doddddy's Avatar
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    isn't it something like this?

    (x is the variable of equation)
    note f(1)=x
    note f(2)=f(1)*106/100
    note f(y)=f(y-1)*106/100

    final equation: f(1)+f(2)+...f(6)=30000

    hmph...
    'nothin last forever even cold november rain

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