Rita Heckt wants to receive 4200 each year for 15 years How

Rita Heckt wants to receive $4,200 each year for 15 years. How much must Rita invest today at 5% compounded annually?

Solution

A= P (1+ (R/100))^n

a= amount = $4200

n= no. of years = 15

rate of interest = 5%

4200 = P x (1+(5/100))^15

P = $2020.27

Hence, rita must invest $2020.27