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Janice would like to send her parents on a cruise for their 25th wedding anniversary. She...

Janice would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $12,000 and she has 4 years to accumulate this money.
Requirement 1:

How much must Janice deposit annually in an account paying 5 percent interest per year in order to have enough money to send her parents on the cruise? Assume that she wants the annual deposits to be of equal amount. (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
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Answer #1

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

12000=Annuity[(1.05)^4-1]/0.05

12000=Annuity*4.310125

Annuity=12000/4.310125

=$2784.14(Approx).

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