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

1. ## 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.  Reply With Quote

2. 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...   Reply With Quote

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