$6100; money earns 11% compounded annually; 5 annual payments Solution Let x be the amount paid each year. after the first year amount present is 1.11x You make a payment of then. after the second year amount present is 2.321x then another payment of x after the third year amount present is 3.65321 x another payment x after the fourth year amount present is 5.81153 another payment The amount at the end is 6.7303x This is equal to 6100$. Hence the value of x is 965.78$.