Question

After looking at the results of her calculations, Naomi has decided to aim for $500,000 savings by the time she retires. She expects to have a starting salary after college of $25,000 to $35,000 and she has taken into account all of the living expenses that will come out of her salary. What will Naomi's annual deposits need to be accumulate $500,000 in a CD at 6%?

Answer 1

You will have to tell me for how long she will make these annual deposits.
let's assume it is n years

so solve for P, the payment

500000 = P(1.06^n - 1)/.06

let me know what you got.