You want to invest equal annual amounts over the next 15 years. If your goal is to have $15,000 at the end of that time and if you can earn 8% on your invested funds, how much do you need to invest annually at the end of each year to reach your goal?

Question

Quizplus · Accepted Answer

To find the annual investment amount, use the future value of an annuity formula: FV = Pmt * [(1 + r)^n - 1] / r. Here, FV = $15,000, r = 0.08, and n = 15. Solving for Pmt gives approximately $552.

You Want to Invest Equal Annual Amounts Over the Next