Description
Steve Madison needs $250,000 in 10 years. (Use the tables below.)
How much must he invest at the end of each year, at 11% interest, to meet
his needs?
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Explanation & Answer
we're doing is investing the same amount each year for 10 years in order to get 250,000. We can do this with a summation calculation:
250000 = P * sum(1.11^t , t , 1, 10)
250000 = P * 18.56142995033279434701
13468.78988682214447947746249065 = P
Roughly 13,469 dollars per year.
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