Homework Answers
Target Future Value = $ 150000, Interest Rate = 4 %, Deposit Tenure = 18 years
Let the required annual deposits be $ p
Therefore, p x (1.04)^(17) + p x (1.04)^(16) + .................+ p = 150000
p x [{(1.04)^(18)-1}/{(1.04)-1}] = 150000
p x 29.7781 = 150000
p = 150000 / 29.7781 = $ 5037.26
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