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How should she compute her required annual investment

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Question - Sue Gray wants to invest a certain sum of money at the end of each year for five years. The investment will earn 4% compounded annually. At the end of five years, she will need a total of $31000 accumulated. How should she compute her required annual investment?

A. $31000 times the future value of a 5-year, 4% ordinary annuity of 1.

B. $31000 divided by the future value of a 5-year, 4% ordinary annuity of 1.

C. $31000 times the present value of a 5-year, 4% ordinary annuity of 1.

D. $31000 divided by the present value of a 5-year, 4% ordinary annuity of 1.

Reference no: EM132606936

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