Assume that you wish to make annual deposits into a savings account. The interest rate offered by the bank is 5%, and you plan to save for the next 6 years. If your goal is for the present value of your savings to be equal to $2,831, how much money must you deposit every year?

Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57

Answer rating: 100% (QA)

This problem can be solved using the formula for the present value of an annuity whi... View the full answer