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You will need at least $5,200 in four years and your friend says she can either loan you $5,200 all at once four years from
You will need at least $5,200 in four years and your friend says she can either loan you $5,200 all at once four years from now or she can deposit $1,300 in your savings account at the end of each year for the next four years. Your savings account earns 12% interest, compounded annually. Which option would be worth more to you four years from now, and how much more? (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV tables, Round your final answer to the nearest dollar amount.) Multiple Choice The $5,200 in four years will be worth $1,013 more than the annual deposits The annual deposits will be worth $821 more than the 55.200 in four years. The annual deposits will be worth $1013 more than the $5.200 in four years The 55,200 in four years will be worth $821 more than the annual deposits
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