How much money should be deposited each year for 12 years if

How much money should be deposited each year for 12 years if you wish to withdraw $318 each year for five years, beginning at the end of the 14th year? Let i=9% per year. Click the icon to view the interest and annuity table or discrete compounding when ,-9% per year. The annual deposit amount should equal $1 (Round to the nearest cent.)

Solution

Solution $56

Working:

A(F/A, 9%,12) * (F/P, 9%,1) = $318(P/A, 9%,5)

A * 20.1407 * 1.09 = 318 * 3.8897

A * 20.1407 * 1.09 = 1236.9091

A = 56.34