Heidi wishes to deposit an amount into her savings account that will enable her to withdraw $800 per year for the next four years. She should deposit $800, multiplied by the

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Heidi wants to withdraw a fixed amount every year for a fixed period, which makes it an ordinary annuity. Therefore, she should use the present value of an ordinary annuity factor to determine the amount she needs to deposit in order to withdraw $800 for four years.

Heidi Wishes to Deposit an Amount into Her Savings Account