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I need help with a financing problem...plz i cannot get it..?


Thirty-one years from today you want to begin receiving $100,000 per year for
the following twenty years. In order to build the amount of cash necessary to
fund those receipts, you plan to make annual deposits into an account earning 8%
interest per year. Your invested funds will earn interest as long as there are funds
in the account. Your last deposit will occur at the end of the 30th year. What is
the amount of your annual deposits that will eventually fund your receipts?

It's a present value of a stream of deposits which will eventually reach $100K. This is also known as the present value of an annuity. Use the formula you've been given.

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