Question
Today is your birthday, and your uncle gives you $3,000 to save for a down payment on a new house. Your bank account pays 7%
Today is your birthday, and your uncle gives you $3,000 to save for a down payment on a new house. Your bank account pays 7% interest, and your uncle promises an additional $3,000 on each of your next four birthdays. Five years from today, how much will you have saved?
What type of annuity is this? Annuity due
Enter the data into your calculator:
| N = 5 | |
| I/YR = 7 | |
| PV = 0 | |
| PMT = -3,000 |
Solve by pressing FV.
FV =
How do you solve this on a HP10bII calculator? Is it one value per year? I am getting an answer of 17,252.22 but I know this is not right. The answer is 18.459.87
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introductory Econometrics For Finance
Authors: Chris Brooks
4th Edition
110843682X, 9781108436823
