Answer
${{\$}} 305.10$
Work Step by Step
THEOREM: Amount of an Annuity
Suppose that $P$ is the deposit in dollars made at the end of each payment period
for annnuity paying i percent interest per payment period.
The amount $A$ of the annuity after $n$ deposits is$ A=P\displaystyle \frac{(1+i)^{n}-1}{i}$
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$P=?$
$n=12\cdot 10=120$
$i=\displaystyle \frac{0.06}{12}=0.005$
$A=50,000$
$ 50,000=P\displaystyle \frac{(1+0.05)^{120}-1}{0.05}\qquad$ solve for $P$
$P=\displaystyle \frac{50,000\cdot 0.005}{(1+0.05)^{120}-1}\approx 305.10$
