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Future Value of Annuity. Kirk can take his $1,250 income tax refund and invest it in a 36-month certificate of deposit at 4%, compounded monthly,
Future Value of Annuity. Kirk can take his $1,250 income tax refund and invest it in a 36-month certificate of deposit at 4%, compounded monthly, or he can use the money to purchase a home entertainment system and put $40 a month in a bank savings account that will pay him 5% annual interest. Which choice will give him more money at the end of three years? After depositing his income tax refund, at the end of three years Kirk will have $ (Use your financial calculator. Round to the nearest cent.) After depositing $40 a month, at the end of three years Kirk will have $ (Use your financial calculator. Round to the nearest cent.) Which choice will give him more money at the end of three years? (Select the best answer below.) O A. With the monthly saving option, he would have $1,550.13 in 3 years. If he put the money into a 36-month certificate of deposit at 4 percent, he will have $1,409.09. OB. With the monthly saving option, he would have $1,443.19 in 3 years. If he put the money into a 36-month certificate of deposit at 4 percent, he will have $1,545.52. O C. With the monthly saving option, he would have $1,409.09 in 3 years. If he put the money into a 36-month certificate of deposit at 4 percent, he will have $1,550.13. OD. With the monthly saving option, he would have $1,545.52 in 3 years. If he put the money into a 36-month certificate of deposit at 4 percent, he will have $1,443.19
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