Question 1137936
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<pre>

It is a classic Ordinary Annuity saving plan. The general formula is 


    FV = {{{P*(((1+r)^n-1)/r)}}},   


where  FV is the future value of the account;  P is annual payment (deposit); r is the annual percentage yield presented as a decimal; 
n is the number of deposits (= the number of years, in this case).


From this formula, you get for for the annual payment 


    P = {{{FV*(r/((1+r)^n-1))}}}.     (1)


Under the given conditions, FV = $6,000;  r = 0.04;  n = 7.  So, according to the formula (1), you get for the annual payment 


    P = {{{6000*(0.04/((1+0.04)^7-1))}}} = $759.66.


<U>Answer</U>.  The necessary annual deposit value is $759.66.



Of the $6000, only 7*759.66 = 5317.62 dollars comes from deposit.


The rest 6000.00 - 5317.62 = 682.38 dollars comes from interest.
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On Ordinary Annuity saving plans, &nbsp;see the lessons

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=http://www.algebra.com/algebra/homework/Sequences-and-series/Ordinary-Annuity-saving-plans-and-geometric-progressions.lesson>Ordinary Annuity saving plans and geometric progressions</A>

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/Sequences-and-series/Solved-problem-on-Ordinary-Annuity-saving-plans.lesson>Solved problems on Ordinary Annuity saving plans</A>

in this site.


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When you learn from these lessons, &nbsp;you will be able to do similar calculations in semi-automatic mode.