Compute the required annual investment


Problem:

CPA Exam - A businesswoman wants to invest a certain sum of money at the end of each year for 5 years. The investment will earn 6% compounded annually. At the end of 5 years, she will need a total of $30,000 accumulated. How should she compute the required annual investment?

a) $30,000 times the amount of an annuity of $1 and 6% at the end of each year for 5 years

b) $30,000 divided by the amount of an annuity of $1 at 6% at the end of each year for 5 years.

c) $30,000 times the present value of an annuity of $1 at 6% at the end of each year for 5 years.

d) $30,000 divided by the present value of an annuity of $1 at 6% at the end of each year for 5 years.

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Finance Basics: Compute the required annual investment
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