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Alan is investing $40,000 in a fund that earns 5% interest compounded annually. Click here to view the factor table. What equ

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Answer #1

Present value = Annuity * [1 - 1 / (1 + r)n] / r

40,000 = Annuity * [1 - 1 / (1 + 0.05)11] / 0.05

40,000 = Annuity * [1 - 0.584679] / 0.05

40,000 = Annuity * 8.306414

Annuity = $4,816

Equal amounts will be $4,816

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