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You have an obligation of $250,000 due on Dec. 31, 2025. To provide for the payment of the obligation, you have made an initial deposit
You have an obligation of $250,000 due on Dec. 31, 2025. To provide for the payment of the obligation, you have made an initial deposit of $25,000 in a special fund on Jan. 1, 202 wish to make 5 equal annual deposits in the fund starting Dec. 31, 2020. You expect that the fund will earn interest at the rate of 8%. Compute the amount of annual deposits that along with the initial deposit will bring the fund balance up to $250,000 at the maturity of the obligation
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