Question
Starting from today (t=0), you are saving $1,500 a year for the next three years (four investments in total). You want to spend your savings
Starting from today (t=0), you are saving $1,500 a year for the next three years (four investments in total). You want to spend your savings at the end of the third, fourth, and fifth year equally. If the market interest rate is 10%, how much can you spend at the end of the fifth year?
a. $2,544.84
b. $2,799.32
c. $3,079.25
d. $3,646.50
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
978-1259722653
