Question
Part 1: Jack and Jill need to save $8700 toward a new car. How long will it take them if they save $210 a month
Part 1:
Jack and Jill need to save $8700 toward a new car. How long will it take them if they save $210 a month earning an annual interest of 5.1% (compounded monthly)? (Treat as an ordinary annuity.) (State youranswer in yearsrounded to the second decimal place, e.g., 12.34)
Answer:
Part 2:
What is the future value (at the end of 9 years) of an annuity that pays $1700 a quarter over 9 years with the payments invested at 6.7% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78)
Answer:
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