Your bank pays 9 interest compounded annually Use the approp

Your bank pays 9% interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of $800 at the END of each year, for ten years.

Solution

p = r (PV)/(1-(1+r)^(-n))

p= payment

r= rate of interest

n= number of years

PV = present value

800 = 0.09 (PV)/(1-(1+0.09)^(-10))

PV = $5134.126