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Sep 7th, 2004, 03:38 PM
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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.
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