They need to invest $7109.25 annually to reach their goal.
let X be the amount to be invested annually
=>FV = 200000
X * [(1+5%)^18 -1]/5% = 200000
=>X = $7109.25
hence they need to invest $7109.25 annually.
An investment is an asset or object received with the goal of producing earnings or appreciation. Appreciation refers to a growth in the cost of an asset over the years. when an individual buy a good as an investment, the purpose is not to consume the good but as a substitute to using it inside the destiny to create wealth. investment definition is an asset received or invested in to build wealth and save cash from the tough-earned income or appreciation. funding means more often than not to attain a further supply of income or advantage and make the most of the investment over a particular time frame.
The funding provides the inventory of capital, and the quantity of capital to be had in a financial system is a critical determinant of its productivity. investment for that reason contributes to economic increase. An investment technique is a set of suggestions that govern the conduct of traders in a way that permits them to remain faithful to the tenets of their funding method.
To learn more about Investment visit here:
brainly.com/question/15353704
#SPJ4