Answer:
9 years
Explanation:
assuming that Clara will make her deposits at year end (ordinary annuity), we can use the future value of an annuity formula:
FV = annual payment x annuity factor
- FV = $61,189
- annual payment = $4,900
- annuity factor = ?
annuity factor = $61,189 / $4,900 = 12.48755
using a future value annuity table and looking at the 8% interest column, the factor for 9 periods is 12.488.
