Tanya Wagner plans to make annual deposits of $7,674.36 until she has accumulated $50,000.Assuming she earns 7% on her investment,Wagner will need to make a total of:

Question

Quizplus · Accepted Answer

To find the number of payments, we use the future value of an annuity formula: FV = P * [(1 + r)^n - 1] / r. Plugging in the values: 50,000 = 7,674.36 * [(1 + 0.07)^n - 1] / 0.07. Solving for n gives approximately 9 payments.

Tanya Wagner Plans to Make Annual Deposits of $7,674