Your grandmother was so proud of her first grandchild that she started a savings plan for you when you were born. The saving plan has an interest rate of 7 percent compounded monthly and the terms of the savings plan stated that she was to make payments on your birthday each year - including the year you were born. The contract states that you cannot withdraw the money until your 25th birthday. If grandma makes the deposit on your 25th birthday and you are able to withdraw $53,319.65, how much did grandma deposit each year? Show your work!

Answer rating: 100% (QA)

To determine the annual deposit made by your grandmother we can use the formula for the future value ... View the full answer