You want to have $25,000 in your savings account eight years from now, and you%u

Question

You want to have $25,000 in your savings account eight years from now, and you%u2019re prepared to make equal annual deposits into the account at the end of each year.

If the account pays 4.75 percent interest, what amount must you deposit each year? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

If the account pays 4.75 percent interest, what amount must you deposit each year? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

x * ( 1 + 1.0475 + 1.0475^2 + .. +1.0475 ^7) = 25000

x = 25000/9.464

= 2641.59

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