How much money must you pay into an account at the beginning of each of 11 years in order to have $5,000 at the end of the 11th year? Assume that the account pays 8% per year, and round to the nearest $1.

700 Use the formula

A=P+Prt

To determine how much money must be paid into the account at the beginning of each year, we need to calculate the annual payment using the future value of an annuity formula.

The future value of an annuity formula is given by:

FV = P * ((1 + r)^n - 1) / r

where:
FV = future value of the annuity
P = annual payment
r = interest rate per period
n = number of periods

In this case, the future value (FV) is $5,000, the interest rate (r) is 8% or 0.08 per year, and the number of periods (n) is 11 years.

We can rearrange the formula to solve for the annual payment (P):

P = FV * r / ((1 + r)^n - 1)

Substituting the given values into the formula, we have:

P = 5000 * 0.08 / ((1 + 0.08)^11 - 1)

P ≈ $344.98

Therefore, you would need to make an annual payment of approximately $344.98 at the beginning of each of the 11 years to have $5,000 at the end of the 11th year.