This problem demonstrates the dependence of the future value of an annuity on the interest rate. Suppose
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This problem demonstrates the dependence of the future value of an annuity on the interest rate. Suppose $1000 is invested at the end of each year for 20 years. Calculate the future value if the investments earn an annually compounded rate of return of
a 5%.
b. 6%.
c. 7%.
d. 8%.
Note that the future value increases proportionately more than the interest rate.
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Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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