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Citbank offers a new savings product: You make the following payments over the next 5 years and will then receive a lump sum payment 20
Citbank offers a new savings product: You make the following payments over the next 5 years and will then receive a lump sum payment 20 years from now.
Year | Payment |
1 | 300 |
2 | 400 |
3 | 500 |
4 | 600 |
5 | 700 |
The annual interest rate is 7% for the next 5 years, as well as the subsequent 15 years.
What is the future value of your investment in year 20?
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