A sum of money is deposited into a fund at 6 interest 500 is

A sum of money is deposited into a fund at 6% interest. $500 is withdrawn at the end of each year for ten years. What is the amount originally deposited?

Solution

Present value=$500*Present value of annuity factor(6%,10 years)

=$500*7.360087051

which is equal to

=$3680.04(Approx).