Answer:
Annual deposit= $3,270.91
Explanation:
Giving the following information:
Deposit= beginning of the year
Interest rate= 4% compounded annually
Final value= $36,000
Number of years= 9
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= annual deposit
Isolating A:
A= {(FV*i)/ {[(1+i)^n] - 1]} / (1+i)
A= {(36,000*0.04)/ [(1.04^9)-1]} / 1.04
A= $3,270.91
