annuity = fixed regular amount of money

FV = future value

i = interest rate

n = number of periods

The Fund Calculator determines the amount we need to save regularly (monthly, yearly) for a certain period to achieve the desired amount at a given interest rate.

A company needs to save 90,000 Euros in 5 years for new equipment. The bank offers a 4% interest rate if we regularly deposit the same amount each year. How many Euros do we need to deposit at least to obtain these funds?

So we substitute into the formula above

annuity=90,000 * ((0.04/(1+0.04) to the power of 5)-1)

annuity= 90,000 * ((0.04/(1.04) to the power of 5 -1)

annuity=16616.44 Euros

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