Answer:
she need to save $10,926.10 at the end of each year.
Explanation:
Given:
Future value of annuity = $500,000
Time period, n = 20 years
annual rate of return = 8% = 0.08
[tex]\textup{Future value of annuity}=\textup{Annuity}\times[\frac{(1+r)^{n}-1}{r}][/tex]
on substituting the respective values, we get
[tex]\textup{500,000}=\textup{Annuity}\times[\frac{(1+0.08)^{20}-1}{0.08}][/tex]
or
Annuity = $10,926.10
Hence,
she need to save $10,926.10 at the end of each year.
