Answer to Question #305375 in Management for aqilah

Question

you need rm20 000 for your education by the end of 4 years. you have rm5 000 and wish to save balance by deposits every year. calculate the amount that you have to save at the end of each year with 8 percent interest.

Answer 1

Amount remaining= 20000-5000= 15,000

FV= 15,000

$PV=\frac{FV}{(1+0.08)^4}$

$=\frac{15000}{(1+0.08)^4}$

$=\frac{15000}{1.36048896}= 11,025.45$