Question

You will deposit $150 each of the next five years (the first deposit will occur one year from today, and there will be a total of 5 equal deposits) into an account that pays a 6.9% effective annual rate. Six years from today, you wish to have exactly $1000 in the account. You would need to deposit

Answer 1

Answer: 243 dollars

Step-by-step explanation:

Let P be the Payment. The

future value of the amount to be paid must equal the future value of the payments.

Since the payments are made at the beginning of the year, the future value of the

payments is given by compound formulas where in both formulas R is the yearly interest rate and n

is the number of payments.

Hence find the attached file for the solution