6. The woman has a saving goal of $25,000 7 years from now. To help her reach the goal, her father offers to give her $1,000 now. She plans to work at a local coffee shop and make 7 additional deposits, one at the end of each year. The first deposit is made at the end of the first year. If all her savings are deposited in a bank that pays 5% interest, how much should her annual deposit be?

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
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The woman has a saving goal of $25,000 7 years from now. To help her reach the goal, her father offers to give her $1,000 now. She plans to work at a local coffee shop and make 7 additional deposits, one at the end of each year. The first deposit is made at the end of the first year. If all her savings are deposited in a bank that pays 5% interest, how much should her annual deposit be?

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