Answer:
Annual deposit= $8,271.94
Step-by-step explanation:
Giving the following information:
Future Value (FV)= $860,000
Number of periods= 29 years
Interest rate= 8% = 0.08
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (860,000*0.08) / [(1.08^29) - 1]
A= $8,271.94
