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Q 6.31: Marc has put together the following estimates for a purchase he wants to make in two years time: Estimated Cash Outflows $2,700 $3,300
Q 6.31: Marc has put together the following estimates for a purchase he wants to make in two years time: Estimated Cash Outflows $2,700 $3,300 $4,500 Probability Assessment 30% 50% 20% PV of 1 PV Annuity of 1 FV of 1 FV Ordinary annui Time periods 596 Factor 90703 1.85941 1.1025 2.05 2 2 2 2 Marc has found an account that will earn 5% compounded annually. If he wants to have enough for his purchase in two years, he needs to put deposit this amount today: A $3,360 B $6,248 C $3,048 D $3,704
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