Question
Suppose you just turned 20 years old, and youd like to take a big trip on your 30th birthday. You found a good investment that
Suppose you just turned 20 years old, and youd like to take a big trip on your 30th birthday. You found a good investment that pays 7% interest. a. You save $100 every month into this annuity investment. How much will you have at the end of 10 years? b. How much of that money is what you originally contributed, and how much interest is earned? c. Suppose instead that you just want to put a lump sum into an investment now. How much would you need to invest in order to have the same amount in 10 years? Assume continuous compounding and 7% interest
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