In this problem, you compute the payment on an ordinary annuity using
Problem 10 The Central Yavapai Fire District wants to take advantage of a state program to save money to purchase a new fire truck. The truck will cost $400,000. To save for the truck, the district will make a monthly deposit into an ordinary annuity paying 10.8% annual interest. If they wish to have the money for the purchase in 60 months, how much should each payment into the annuity be?
This gives a payment of 5057.13.