Question
If the interest rate increases, the future value of an annuity will increase decrease stay the same Frodo plans on making a trip to visit
If the interest rate increases, the future value of an annuity will
|
| increase | |
|
| decrease | |
|
| stay the same |
Frodo plans on making a trip to visit Rohan in three years.
He plans on staying for four years.
Frodo thinks he will need $15,000 a year while in Rohan. His account in Rohan will earn 8.25%, compounded annually.
Frodo currently has $7,000 saved for the trip in an account earning 6.6%, compounded monthly.
How much must Frodo save each month in order to go on the trip?
|
| $1029.92 | |
|
| $1068.42 | |
|
| $1065.03 | |
|
| $1103.53 |
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Short Term Financial Management
Authors: Ned C. Hill, William L. Sartoris
3rd Edition
0023548320, 978-0023548321
