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You plan to buy a house in Florida ten years from today. To do this, you estimate that you will need $200,000 at that time
You plan to buy a house in Florida ten years from today. To do this, you estimate that you will need $200,000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits in your savings account, which pays an annual percentage rate of 2 percent compounded annually. If you make your first deposit at the end of this year, and you like your account to reach $200,000when the final deposit is made, what will be your annual deposit?
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