Abby mia wants to know how much must be deposited in her local bank today so that she will receive yearly payments of $18,000 for 20 years at a current rate of 9% compounded annually. (use the tables found in the textbook.)

We are not given tables, so will just use the amortization formula.

where 
P=amount to be deposited today, to be found
A=amount withdrawn each year=18000
i=Annual interest=9%
n=number of years = 20

Substituting values,


=164313.82   to the nearest cent

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