Question
Beverly and Kyle currently insure their cars with separate companies, paying $650 and $565 a year. If they insured both cars with the same company,
Beverly and Kyle currently insure their cars with separate companies, paying $650 and $565 a year. If they insured both cars with the same company, they would save 25 percent on the annual premiums.
What would be the future value of the annual savings over 10 years based on an annual interest rate of 9 percent? Use Exhibit 1-B.
| 15.193 10 years @9 percent according to EXHIBIT |
Note: Do not round intermediate calculations. Round time value factor to 3 decimal places and final answer to 2 decimal places.
FUTURE VALUE OF ANNUAL SAVINGS?
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
