Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An individual is planning to set-up an education fund for her children. She plans to invest $10,000 annually at the end of each year. She

An individual is planning to set-up an education fund for her children. She plans to invest $10,000 annually at the end of each year. She expects to withdraw money from the fund at the end of 10 years and expects to earn an annual return of 8%. What will be the total value of the fund at the end of 10 years? (Round to the nearest dollar.)
8%, 10 years annually Factor
Present value of $1 0.463
Future value of $1 2.159
Present value of an annuity 6.710
Future value of an annuity 14.487
Group of answer choices
$ 46,320.
$100,000.
$144,870.
$ 67,107.
$215,890.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

5th Edition

0324027443, 9780324027440

More Books

Students also viewed these Finance questions