Answer to Question #207189 in Financial Math for James

Question

Samuel wants to make regular annual payments of size P dollars into an annuity that pays

interest of an annual rate of 0.25 or 25%. He wants to have 1.5 times the invested amount

in the account after 5 years.

A) Determine the size, P of the required annual payment.

B) Create a table and do a step by step calculation to verify your answer in part A