Problem:
Your firm wants to save $250,000 to buy some new equipment three years from now. The plan is to set aside an equal amount of money on the first day of each year starting today. The firm can earn a 4.7% rate of return.
Required:
How much does the firm have to save each year to achieve its goal?
- $78,004.67
- $81.414.14
- $83,333.33
- $76,896.16
- $75,966.14
Note: Please show the work not just the answer.