John needs $60,000 in 18 yrs. The interest rate is 10%, what is the payment needed to make at end of each year?
Added by Isaac H.
Step 1
Step 1: Calculate the future value of the $60,000 in 18 years using the formula for future value of an annuity: \[ FV = P \times \left( \frac{(1 + r)^n - 1}{r} \right) \] where FV = future value P = payment r = interest rate per period n = number of periods Show more…
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