Colin would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $15,000 and she has 5 years to accumulate this money. How much must Janice deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise?
Future value of annuity = P×[(1+r)^n-1]÷r
r is interest rate per period
P is payment per period
n is number of payments
$15,000 = P×[(1+10%)^5-1]÷10%
Annual deposit, P = $2,456.96
Colin would like to send her parents on a cruise for their 25th wedding anniversary. She...