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

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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) About Me  (Show Source):
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The annuity formula:

P+=+A%28%28%281%2Br%29%5En-1%29%2Fr%29%29

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