Answer:
Annual deposit= $8,155.37
Explanation:
Giving the following information:
Calculate the payment Rob needs to make at the end of each year at 6% compounded annually to reach his goal of paying off $300,000 in 20 years.
To calculate the annual deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (300,000*0.06) / [(1.06^20)-1]
A= $8,155.37
