Nu-Tools plans to set aside an equal amount of money each year, starting today, so that it will have $25,000 saved at the end of three years. If the firm can earn 4.7 percent, how much does it have to save annually

Explanation:

The future value of an equal amoount of money invested each year, starting today, is calculated with the formula for an annuity with payments made at the beginning of each period.

The formula is:

Where:

Substitute solve for the annuity:

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30