9514 1404 393
Answer:
$5,336
Step-by-step explanation:
The formula for an ordinary annuity is ...
A = P((1 +r)^t -1)/r
We want to find P when A=70000, r=0.059, t=10
P = Ar/((1 +r)^t -1) = 70000(0.059)/(1.059^10 -1) ≈ 5336
Owen must contribute $5,336 each year for 10 years to have $70,000.
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Additional comment
If this is an annuity due, with contributions made at the beginning of the year, the above contribution amount can be divided by 1.059. That will give $5038 as the contribution amount.
