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You are contributing money to an investment account so that you can purchase a car in five years. You plan to contribute six payments with
You are contributing money to an investment account so that you can purchase a car in five years. You plan to contribute six payments with $2,000 each year. The first payment will be made today (t = 0), and the final payment will be made five years from now (t = 5). If you earn 8% in your investment account, how much will you have in the account six years from now (t= 6)? Note: This is an annuity due problem.
$15,721.3 | ||
$15,845.6 | ||
$16,843.2 | ||
$17,786.3 |
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