Answer Happy

Our university plans to carry out a campus expansion project in 6 years. It is estimated that $3 million will be needed at that time. The university plans to deposit a sum of money at the end of each year for five years from now. The annual interest rate is 5.5%. How much (in thousands of dollars) should be deposited each year to ensure that the university will have enough money at the end of the 6th year to pay for the expansion project? interest rate (IR): 5.50% uniform payment series n A/F A/P n FIA 1.0000 PIA 0.9479 1 1.0000 1.0550 1 2 0.4866 0.5416 2.0550 1.8463 2 3 0.3157 0.3707 3.1680 2.6979 3 4 0.2303 0.2853 4.3423 3.5052 4 5 0.1792 0.2342 5.5811 4.2703 5 6 0.1452 0.2002 6.8881 4.9955 6 7 0.1210 0.1760 8.2669 5.6830 7 8 0.1029 0.1579 9.7216 6.3346 8 9 0.0888 0.1438 11.2563 6.9522 9 10 0.0777 0.1327 12.8754 7.5376 10