Question

You want to have $60,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.4 percent interest, what amount must you deposit each year?

Answer 1

$3,474.39

Step-by-step explanation:

The amount that you need to deposit each year (PMT) is calculated as follows:

FV = $60,000

N = 12

P/yr = 1

i = 6.4 %

PV = $0

PMT = ?

Using a Financial Calculator to input the values as shown, the deposit each year would be $3,474.39