Dorothy wishes to deposit an amount into her savings account that will enable her to withdraw $1,500 per year for the next five years.She should deposit $1,500,multiplied by the

Question

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Dorothy needs to withdraw $1,500 per year for the next five years, which is a typical example of an ordinary annuity. Therefore, she should use the present value of an ordinary annuity factor to calculate the amount she needs to deposit to achieve her goal.

Dorothy Wishes to Deposit an Amount into Her Savings Account