Question

how much will m. fields deposit each year for 10 years, beginning at the end of the first year, to accumulate the desired amount if the investment earns an annual rate of 12%?

Answer 1

To accumulate a desired amount with an annual interest rate of 12%, M. Fields would need to deposit approximately $794.54 each year for 10 years.

To calculate the amount that M. Fields needs to deposit each year to accumulate a desired amount with an annual rate of 12%, we can use the formula for the future value of an ordinary annuity:

FV = P*((1+r)^n-1)/r

Where:
- future value is the FV of the annuity
- P is the yearly deposit
- r is the annual interest rate
- n is the number of years

Let's assume the desired amount is $10,000. Plug-ging the values in-to the form-ula, we get:
$10,000 = P*((1+0.12)^10-1)/0.12

Solving for P, we find that M. Fields would need to deposit approximately $794.54 each year for 10 years to accumulate the desired amount.