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This exercise compares the future value of investing an amount of money in different time frames. A total of $20,000 is invested into funds
This exercise compares the future value of investing an amount of money in different time frames. A total of $20,000 is invested into funds paying 5% interest over a 20-year period. Compute the future value at the end of 20 years for each of the following: (Round your final answers to two decimal places.) (a) $1000 is invested in an annuity each year for 20 years. $ (b) $2000 is invested in an annuity each year for 10 years. After the first 10 years, the money remains in the fund, drawing 5% interest compounded annually. $ (c) The entire $20,000 is invested at the beginning and remains in the fund, drawing 5% interest compounded annually. $
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