Answer to Question #122947 in Finance for Natasha

Question

what annual deposits are needed for 10 years to provide for a perpetuity of $3000 per year with the first payment due at the end of 11, 1 year after the final deposit with J1 = 8% per annum

Answer 1

$x*0.08=3000$

$x=37,500$ - amount at the end of 11 years

$37,500=A*\frac{1.08(1-1.08^{10})}{-0.08}*1.08$

$A=2,219.31$

A - annual deposit