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Jane Smart plans to make the following deposits in an account towards cash purchase of a real estate property. $17,000 $17,00

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Answer #1

A.

Period cash flow FV, n, 9% Future worth
1 7000 1.0900 7630
2 12000 1.1881 14257.2
3 17000 1.2950 22015
4 22000 1.4116 31055.2
5 27000 1.5386 41542.2

Total amount after deposit will be 116499.6

B.

FV=116499.6

A=?

FV= A(FVIFA,5 year, 9%)

116499.6= A(5.9847)

A=116499.6/5.9847

A=19466.23

So 19466.23 is equivalent uniform annual deposit should be made.

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