SOLUTION: A firm plans to invest an amount of money at the beginning of every year in order to accrue a sum of �85,000 at the end of the 4 year period. What is the value of the amount if the

Question 1106161: A firm plans to invest an amount of money at the beginning of every year in order to accrue a sum of �85,000 at the end of the 4 year period. What is the value of the amount if the investment rate is 6%? (Give your answer to the nearest euro)

Answer by greenestamps(13209) (Show Source): You can put this solution on YOUR website!

The annuity formula:

P is the desired future value: �85,000
A is the amount of the annual investment: the unknown in this problem
r is the periodic interest rate: 6%, or .06, per year
n is the number of periodic investments: 4

Plug in the numbers and solve
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